I love the idea of Windows 7 having touch capabilities built in. A widescreen touch capable TV with a Windows 7 PC hooked up to it means no mouse, no keyboard but total control. Build similar technology into the next XBox, not for actually controlling games obviously, and you could have control of all living room media without the need for multiple controls. All you need to add is a touch sensitive media remote that displays the menu's that appear on the screen so selection is as easy as possible and you have a fantastic touch driven media suite all from Microsoft. Add the next generation of Windows Home Server, which I imagine will have full media server capabilities built in, and Microsoft can easily beat Apple and Sony to the living room and have it sewn up before anyone realises what's happened.
Bill Gates and Steve Ballmer appeared on stage at the D: All Things Digital conference and introduced the world to Windows 7, or at least a major piece of Windows 7 functionality. The ability to manipulate Windows applications using touch is an excellent feature but is getting horrible press from people asking, "do we really want to touch our computers?" Now remember when rumours were circling about Apple releasing a touch phone and it was hailed as the greatest invention of all time, even though Microsoft had been using touch technology on it's mobile platforms long before Apple did. I am not arguing that Apple have used touch technology much more succesfully than Microsoft but MS did come up with it first. On the run up to the Macworld Keynote 2008 there was speculation that Jobs was going to announce a version of the iMac with touch technology built in. Once again the web was full of statements of the genius of Jobs and what a fantastic idea this was. Microsoft have actually done it.