Sounds like MS moves too slowly to keep up with the market these days. While I don't agree with the super fast version changes a la Chrome and Firefox, MS does need to ramp it up a bit to stay relevant. The big thing I'm afraid of is that by the time MS gets W8 out the door next year, Apple and Google will have taken most of the good ideas and put them into their own products.
OSX gets an update every two years. iOS gets an update every year. Android gets an update about every six months. MS can't compete if Windows gets an update every three years and WP7 gets an update every year-and-a-half.
MS Research cranks out some really cool ideas. I'd rather they develop all of them into products and "see what sticks" rather than have a lengthy process that brings some of them to market years later.