ClearType has been around for a very long time. It's basically subpixel-rendering that improves the visual quality of text (sort of effectively tripling the LCD resolution). Last I checked, Microsoft had patented the hell out of it (and I last checked a few years ago).

I think they're right about touting a technology that effectively triples text-display resolution.

And for your other observation about the whole enchilada, look around you-- do you see people that use external keyboards with their iPad? These would be willing customers for a tablet that is actually is pen+touch+type (ditto with people who try and augment their iPad with screen pens, even on a screen that has trouble with palm touches).

Lastly, I'm skeptical about "companies-with-taste". Steve Jobs certainly had good taste, but I'm not sure the whole of Apple is comparably good. I think, sans Jobs, Microsoft is doing the best they can-- prototyping for months and trying to understand where they fit into a market.