Hmm.
Operating system in a box. (Or a browser.) They get this far enough and you won't need a full-fat "windows consumer client operating system." Tiny cheap embedded devices running the equivalent of "windows 8 core edition" with a browser and silverlight. Slap 'em on some sort of touchscreen and *paf* consumer computing dealt with. (Eee-top touch, mobile phone, mPad, HTPC, what-have-you.)
Far more interesting to me is this question: when will silverlight be capable of running serious 3D gaming? I ask only because if I were programming for the next MS console, I'd give some serious thought to that console essentially being a pair of the fattest CPUs and GPUs I could find, a whack of RAM, some flash and that above mentioned silverlight-in-a-box OS. Would make cross-device compatibility easy, integrating into “windows live 2” or whatever it will be called, and other things.
Imagine: Splinter Cell 24 (Fischer is oh so tired,) a great geriatric shoot-‘em-up for the console, with a more lightweight add-on DLC super bonus special sauce for your WinPhone8 (with blue crystals!) Your desktop could also play the Splinter Cell 24 (if you didn’t have a console) because it was just a silverlight game, downloaded through the LiveStore.
As I said: Operating system in a box/browser. Makes me go hmmmm.