Looks like its building on the Windows 7 Tablet OS. From the sounds of what he said at the end of the video, this new OS is an attempt at creating an expansive OS that links devices together fluidly. If done right, it could make the slates he talked about quite a bit more functional than the current tablet offerings we have.
Hopefully MS goes this route and pushes it with effective marketing, because Apple needs a nip in the bud. I honestly feel that Apple is sleeping on its laurels with the iPad in terms of what the device can do. As an owner of the first one, I honestly must say it really is just a big iPod touch 90% of the time. The larger screen makes for so much more potential, but giving it the same innards and OS as the other touch devices is blatantly holding it back.
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