Finally they've accepted the fact that they need to optimize to apple products, the Gates mentality has been blocking innovation in this area and this might be the breakthrough !
Edit: Fixed possible factual error.
I think that's a little unfair. The technology just wasn't ready yet. The one place they got it really wrong was with the OS but we didn't have WiFi yet (well most people didn't), we didn't have the kind of touch displays we have now, flash storage wasn't cost effective so they probably used HDD's. They had the general idea right but were too early. Unfortunately when the tech was ready MS was too slow.
http://en.wikipedia.org/wiki/Windows_for_Pen_Computing
(Watch some of the youtube demos, really cool)
Gates has attacked the iPad on every interview claiming that it's useless.