There is too much focus on Windows operating system and on the NC vs PC axis in the today's conditions. The actual battle is in the future.
Internet is a limited vechicle between computers and public life.
Today Internet and computers have little to do with the public. The OLE revolution that gave life to Microsoft will be the most hated legacy. If they throw away ActiveX and Windows in favor of something else, that smells trouble for the giant from Redmond. They have to do something different. Maybe the buying of WebTV is an indication that they are on the way of doing it.