That's what I was saying. MS can do this w/o creating a new OS, or should be able to. They had a version of XP to do it, I don't know if there was a Vista version.
I have a feeling that for the masses, most will stick with Win 7. Except those who will benefit from the features of the new OS. MS is probably going to wait another 3 years before releasing another big one (a potential Win 7 replacement), probably after support for XP ends. And why not? MS is currently making cash hand over fist with 7. Ballmer isn't going to screw that up.
This way, by that time, they can dump 32 bit entirely, the developers by that time should have plenty of native 64 bit apps for us, and that release will most certainly be no less than 64 bit, with a 128 bit option for those who really wants kick ass system. Kind of like it was a few years ago, when 32 bit was mainstream, yet for those who wanted it, 64 bit was available. 64 bit began being available to customers in the spring of 2005, but at that time, not many bit. Only when Win 7 went to RTM, 64 bit computing skyrocketed, 4 and a half years after availability.
The same will happen with 128 bit, it'll take some time to become mainstream, but probably not as long as it did with 64 bit. Technology is moving at a faster pace now.
But I do want to get my hands on the beta of 8, probably not to buy it, but to take it for a test drive. It'll still be interesting to see how good it really is, but I highly doubt, from all accounts that I've read so far, that it has no chance of overtaking 7, or even seriously cutting into it's market share.
However, it may very well cut into the market share of previous versions of Windows that's aimed at a certain market.