Lol, maybe Microsoft hasn't changed. I like windows on desktop, but I love android on tablet. I guess I'll sticking with android for now.
Oh wait, almost all software crashes.
When you can't or don't make your demo run smoothly during a high visibility presentation, it makes you look careless, either in the development of your product or of your demo. In either case, it reeks of incompetence. This might not be a justified impression (accidents happen), but that's how life is.
Don't do that. Or script out the demo really carefully.
PR exists to make the products look good.
Other Apple keynote bloopers: http://www.youtube.com/watch?v=GCZgqoQSGu4
Software is buggy sometimes, that's just life, and Apple is not immune to it. The best a company can do is have a backup system that they can quickly switch to so they can continue the demo.
Microsoft isn't done they have until October minus 1 month for manufacturing to go.