Windows 7 is an excellent operating system. It is secure. It is very robust. It is easy to use. It is feature rich. It connects to everything and uses everything. In what way is that going nowhere?

Same on the server side with Windows Server 2008 R2.

I think the competition provided by Apple is proving terrible for Microsoft. They are abandoning their core strengths while poorly trying to duplicate what led to Apple's recent success (which, it should be noted, is largely the same design philosophies that Apple has been using for decades, through their rout as well). It is a classic cargo-cult where Microsoft desperately tries to copy the playbook.

In the end they diminish the advantages they hold, while continuing to be deficient by the Apple playbook. They are following so they can never lead.

I must say again that it is telling that the people who are most impressed with Microsoft's makeover are the people who would never buy their products -- the Apple faithful. They still think that Apple is leading, which is natural when one follows the other, but they like what Microsoft is doing. That's great if second place accolades could carry a business.