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I'm a little confused. I thought windows RT didn't have a 'classic mode' - and all apps were metro-style?

All third-party RT apps have to be Metro-style. Microsoft granted themselves an exception to that rule for Office RT and IE.

More precisely, the exception is for preinstalled apps.

So 3rd-party vendors of WinRT tablets could bundle a bunch of crap in Desktop mode again?

No. He mean system tools like Task Manager, File Explorer, Power Shell and apps like Notepad, Paint and Calc.