I think, far from dropping the ball on 'slate' form-factors, Microsoft has given away a great idea in the form of the Courier - a book-like, protected and familiar form. Clearly, based on recent news, they are not going to make and market such a device.
I would enjoy making one. I have the know-how to emulate the functionality witnessed in the tech demos of the Courier, in .net. Really, they have all the important ideas laid out - what form factor, what you want to do, how it can benefit YOU. Seeing the desire for the product and the opportunity to make one is a situation that comes along rarely. In form it is basically an evolved Nintendo DS, easily possible, challenging to make cutting-edge.
As with many Microsoft ideas it is ahead of its time - already on high-end Dell tablets one can purchase a touch-screen which is friendly to both finger and stylus. This will only get more common - right tool for the job. To focus exclusively on fingerprint-sized interaction on a non-keyboard device is a mistake, why can't I use my fingernail? duh.
I own and use an HP TC4100 Tablet, Nokia N800, Wacom tablet an iPod Touch and a Sony E-Reader. Have used an iPad,
Angels, call me!