Which will be the ARM-based netbooks/laptops, just around the corner. Think about it: ARM offers power _and_ great battery life _and_ a super cheap price. What's not to like for the general consumer?
But Microsoft can't compete here with XP, Vista, or 7 - as all the applications that tie people to Windows currently are compiled for x86! Even if they did release an OS for ARM, they'd have to differentiate it enough so the general consumer could understand why they can't install Spore or TurboTax or whatever on their shiny new Windows laptop. More than likely they'd end up releasing some rushed version of Windows CE.
Now compare that with Ubuntu, for example, which has a fully-supported ARM distribution, and works extremely well on low-powered netbooks (the netbook distro is a bit of a work-in-progress, but using the regular desktop version is solid.) It would be pretty hilarious to see Microsoft trying to force a netbook WinCE instead down manufacturer's throats, unless they spent a lot of time to polish it, which they don't have.
Hopefully this will be the final tipping point in realizing that the general consumer doesn't need to pay Microsoft to have a usable computer. Again, no turnips, and as a plus computing as a whole moves forward!