Total complete FAIL.
Tablets are not going to replace desktops, laptops or netbooks and this is the only focus that was displayed in the video.
The only redeeming feature was the dual-window resize option but when you're talking about an operating system then one good feature among hundreds of intentionally broken and intentionally removed existing features doesn't cut it. I thought Windows 7 was utterly horrible and nailed the coffin, this just threw the coffin inside Mount St. Helens at it's peak glory in the early 80s.
Microsoft has achieved their biggest goal though, completely decimating the user experience in order to make their software as devastatingly unusable as humanly possible. Congratulations Microsoft, you've managed to figure out how to make your products even worse!