C# might be a great language now, but 1.0 was horrible! It was a painful experience to gain adoption within companies and frameworks on top of it (ASP+ for example) still needed to mature. The world is different now.
I predict Microsoft will push NodeJS / JavaScript / HTML5 for application development. I'm assuming this will be targeted towards the Go style community and applications. It has a lot of the same properties with Go starting to gain traction I can see why Microsoft would be exploring the space.