What Dell seems to be missing is that a stationary PC no longer has a long term future in the mass market, other than in high-end applications. Laptops started stealing the mobility niche first., and tablets will be next. The TV doesn't count. It's all about being able to take your important personal data with you, where ever you go, and using your familiar Operating Environment to access it. Maybe I'm over-estimating the importance of this for the average user (and by average, I meant people who mostly do web surfing, word processing, watching videos and photos), but for me (a software dev), that's what it's all about. Judging by the number of people who buy laptops now instead of regular PCs, I'd say such an opinion is justified.
Why would one need a clunky desktop if a laptop can do the same thing and be portable to boot? I can always hook up my laptop to a large monitor when I need. And following that logic further,, why would I need an ultrabook if my tablet can do the same and be hooked up to a bigger monitor when needed?
Personally, I only need a powerful computer when "my code's compiling". Most other times, all I need is an internet connection, a good word processor, and all my docs and pictures with me. For this kind of application, having an ultra-powerful computer is irrelevant. Tablets will soon be more than powerful enough.
I can't imagine why the large majority of non-technical users would need anything more powerful. That means - the PC mass-market will eventually end up with Windows 8 tablets. Mac users will end up with iOS tablets. Personally, I think Android will end up losing the tablet war, and I suspect this will be because it has no good word processor (Basically - MS Word) running on it. (I think most other apps are easily replaceable for the average user)
The only way highly mobile personal computers won't count, is if everyone starts using the cloud exclusively, in which case, any dumb terminal will do. I think people will always have some level of personal data on their personal computers. I'm not sure a shift to storing everything on the cloud is going to come all that soon - offline access is quite often indispensable. If so, Google's online word processor strategy will not work so well (not least because the product is nowhere near MS-Word in terms of maturity), and Microsoft will win. (more's the pity)
So yeah, I too think Dell's mass market of PC users will evaporate pretty soon.