They should have released office applications for iOS at 2x the price of their iWork equivalents. Then they should have moved all that into the metro style, and released basically the same metro designs for Windows 8.
That might have cost them more than it produced in revenue, but now the result is that millions of people have been delightedly using their iPads for a couple years, and they're doing ok without MS Office. Even enterprise users. And MS still doesn't have an announced plan to bring Office to Metro (Windows 8 Style, whatever).
Including Office in Windows 8 RT might attract a lot of people to the platform. But it might also be the only way they can get Office deployed on a lot of tablets. Like, great, but also technically shovelware. I'd love to say that Microsoft has their work cut out for them, but that implies that they are working on the right things now. Dunno. I hope it works.