First is that they have drifted away from a basic principle that made Bill Gates a billionaire -- backwards compatibility, or at least when backwards compatibility had to be broken there was clear benefits and an upgrade or conversion path to ease the pain. Surface RT, Surface Pro, Win8, etc are just confusing choices to any customers thinking of a purchase. I'd rather just buy an iPad, quite frankly.
Secondly, Microsoft is still bitter and stinging over the old "I'm a Mac, I'm a PC" commercials. Those were epic, hilarious commercials that stuck a cord with users and that MS never countered. They should have blasted back with the truth -- yeah, Macs are cool but when you want to get real work done you use Windows. Instead they were silently stewing with resentment. Surface and the Surface marketing campaign can be summed up as MS's attempt to show the world that they are "cool" too just like Apple. But as most people know, trying to be cool is uncool and everyone laughs at the attempt. MS needs to embrace and be proud of their identity and stop trying to me-too Apple and just build products that work and run the world.