people don't want what they have come to expect from Microsoft on their phones... rebooting, slowness, crashiness and vulnerability
I was with you til this. Rebooting, slowness, and "crashiness" are just fallacies. Vulnerabilities aside, XP and Win7 do not generally suffer from rebooting, slowness, or "crashiness". Even Vista, once it finally booted and UAC was disabled, was a solid OS. I ran it for 2 years that way, and the only reason I upgraded was because I got a free copy of 7 Pro. (I do not have the time nor motivation to maintain an up to date linux system at home) User Confidence is not a general problem with Windows to their users. On the contrary, people use Windows because it works. It's only a perceived problem to their detractors.
Windows 8 has the huge problem of them attempting to steal mobile markets while using the same OS as on the desktop. That's a huge mistake. The input devices are, and will most likely always be too different to make both appealing simultaneously.
Windows most insurmountable advantage is business. Business uses Windows for the PCs. It's not 100% usage, but close enough for this discussion. Business is all about keeping costs down, and OS migrations are anything but that. OS upgrades cost real money as well as time and lost productivity. "Blue" is going to have a multiplying effect on that. You see it, others see it, how can Microsoft not see it?
Even with completely FREE upgrades, business still loses by applying those. It's like Microsoft is deliberately giving enterprise users a legitimate reason to switch to any version of Linux that meets their needs. They can't underestimate that it won't happen, because those MBAs will start to shit little chickens if they see cost projections having noticeable upswings due to Microsoft's annual update.
Lose the business (and Office dominance due to that), and Microsoft will lose the home as well. It just seems like a strategy doomed to fail, all in an attempt to copy competitors in a different market.