I think you bring up a very interesting point. Microsoft is indeed tightly embedded in the enterprise. If they ceded the home PC market to focus on the enterprise, I suspect they would see much better revenue growth. Enterprise needs often emphasize things that are not really high on home users' lists: remote installation & configuration, customizable user security policies, integrated calendaring and email, etc...

To be sure, MS is certainly doing a lot in the enterprise space: SQL Server, Sharepoint, Outlook, and IIS just to name a few. But little (if any) of that stuff translates especially well to average consumers who have no need for such products. In spite of that, MS persists in having all these consumer distractions that are money losers and sap time and resources to support and promote (see: Zune, Xbox). But frankly, that's not really what they're good at as a company. I mean that as no disrespect to the people on those teams, but the company itself is just not consumer oriented. The consumer side of MS products always feels "bolted on". It's just not part of the culture. They just need to start being OK with that.

If MS could realize that they don't need to dominate every corner of the computing world in order to be a competitive company, it would be a huge start to getting them back on the right path. Remember when they wanted to buy Intuit, and then came out with MS Money to compete against Quicken when that fell through? That sort of thing makes little sense, and collectively those small things distract a company from its mission (to be fair, they recently killed MS Money, so there is hope).

Here's hoping they turn it around. The marketplace needs competition, and a toothless Microsoft wearing a "kick me" sign is not helpful for the industry as a whole.