upsz

True, but I do not believe it addresses the problem.

While touch friendly interfaces are rising it should not be used as a catch all. If any interface is designed to be used for the finger, than more than increasing space around icons should be done.

In that case, an specific theme should be used for finger-oriented interfaces that boost the spaces and inputs.
Also, the rest of the users should not be handicapped for something that they will never take advantage off.

I would like to see a screenshot of W7 with a few windows open in a small screen device such as an EeePC....

Great video.
But raises an interesting question:

At least for 2 times the space consideration was raised: one of the time to explain why the button (on the left to each icon) was removed.
So, if space is such a big issue, why the empty space around the icons?
Wouldn't a better space management address a little bit better that question? I would really like to see some comments on that in order to better understand the UIX.