Microsoft has always worked hard to make Windows as flexible as possible, hardware wise, functionality, etc. Some consider this a credit, some a detriment, but no matter what I consider it to be a huge technical challenge. Several people seem to be taking this from the perspective of an iPad attack which is a very narrow minded view of the possibilities here.
What MS is doing here (and very wisely I think... IF they can pull it off) is to produce one OS that works cross hardware environment. Win 8 it seems to me CAN run like classic Win 7 (and earlier) supporting the plethora of existing Windows apps. This is a MUST for MS. But originally MS tried to make the old Windows UI touch friendly, which is a very bad approach. The existing Windows UI grew up around a mouse and keyboard and MS has finally realized it. You can't make it work for touch effectively, and so they are wisely separating the two.
To solve the problem they are wrapping Windows in an OPTIONAL alternate touch designed UI for systems where that is the preferred interaction method. They have developed a new class of touch apps and a new way to manage the overall UI. But most importantly they have blended the two forms of personal computer interaction. This is BRILLIANT to me. You can now have one device, let's say a tablet, that you can use like a touch device. But you can ALSO sit it in a dock, with a keyboard and mouse and use it to replace your desktop PC including all those legacy apps and Office programs that are the standard. When done you undock and flip back to the touch UI to take it with you, but you still have access to all your documents. Microsoft has for the first time realized that the ultimate device will function in BOTH modes and to be efficient the OS on that device also needs two distinct methods of interaction. And this I think is what is brilliant.
You'll never see an iPad as the primary device on an office desk in its current form and UI. Your accountant or DB admin or whatever will always be more productive with a keyboard and mouse when it comes to heavy "business" style applications. This is what the existing touch UI's can't provide. But a device that can run no compromise Office style apps, business apps, the millions of existing Windows apps in general... and then pick up and go with a nice touchscreen keyboard, touch UI, web browsing, etc... I know I've used the word a couple times but it's brilliant. I just hope their execution is up to their vision.
Edit... my mind is running with the further possibilities... they will definitely cross up development between Win Phone and Win 8... so now Windows developers can target the mobile market and the largest desktop market with one app. I still don't see the future of Win Phone turning around but who knows, this could be a very smart move on MS's part to leverage their Windows developer base and established market.