I haven’t digested in any depth, and I won’t. Just know that the headline is bad.
My main reaction: how could anyone be surprised? Their products stink. Have for a long time.
I adandoned the Microsoft OS, and almost all MSFT software, in 2004 and have happily never looked back. I bought a $500 HP PC with Vista last year for testing, and it was so stuffed full of craplets and so horrible to use I had to move it to another room.
Between more full-throated web applications, the Apple renaissance, and open source, you really don’t need to use a PC any longer. And once you know you have a choice, why would you want to? That’s what is killing Microsoft; the economic downturn is just the accelerant.