The tablet space is an attractive market for now, but that fad will pass in 2 years when the general public realizes that touch UIs suck.
I'm not sure where you get the idea that touch UIs in general suck. They do suck on desktop/laptop machines where you're reaching up from the keyboard to touch the screen. They also suck for applications which involve significant typing, so are not good for programming, or writing that company report, or your next novel, or where you make significant use of other input devices with precision control, such as in photo editing, 3D modelling etc.
But that still leaves a LOT of the stuff that people spend a lot of time doing. They're really good for browsing and reading (or watching video, or pretty much any content consumption). They're fine for applications which require only small amounts of input, so all that tweeting, updating facebook, Skype etc. I now find that I'm spending more of my screen time at home in front of a tablet or large screen phone than I am at laptop or desktop computer. Partly, that's because I don't currently have time/energy for any out of work programming projects. The only things I really do sat at a computer is email where a keyboard is more efficient, banking/sorting finances (which with the right software would be fine on a touch screen tablet I just currently have it set up on desktop) and photo editing.
It's not just home use either. Every single work colleague I know who spends time involved in management committee meetings either has or wants a tablet. It's not just to look cool; flicking through minutes and meeting documents on a tablet is easier and more efficient than using a laptop, and it does save on the volume of printed paper.
The win8 interface is horrible and confusing on a computer. The 70 yr old woman who's in the process of buying my house came round a few days ago apologizing for not responding to emails; her computer had broken and she'd been all round town looking for a shop which would sell her a new laptop with win7. Failing to find one she was waiting to get her old machine fixed instead. Seeing behaviour like that, I am not at all surprised that new PC sales are hurting. Win8 is becoming as toxic a brand for MS as Vista.