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Yes, unless I am missing something. It's up to the developer (same as on Web w/ CSS Breakpoints) to accommodate the various 'breakpoints' or devices visually. To say it's poor UX is inaccurate, will there be plenty of unoptimized UI/UX full-screen apps? Sure, but the functionality itself is not poor UX.

They just announced that you can make your apps run in a window, instead of full screen.

XAML and its Adaptive Design concept allows the layout to rearrange itself to better fit smaller or larger screens. And the programmer can always explicitly use different UIs depending on how many pixels are available to the app.

And everything I wrote is already happening (actually, it's been happening for a while). Just try any well-built W8 app in different screen sizes or snapping configurations. ;)

You can move any app so it takes up only a slice of your screen