Shouldn't a reduced-functionality version of MCE be the entry-level version of windows? I hate to bring it up, but OS X 'Tiger' is comparable.

Furthermore, it would justify an upgrade cycle, especially for clients still married to Win2000, while they're waiting for Longhorn.

It would also be a good point to make while trying to sell Licensing (or Software Assurance, or whatever it is called today).

If you look at what Apple has done with the Mini Mac/Mac Mini, whatever, it seems that some sort of enhanced multimedia version of windows should be the entry-level system. It does not have to have some superior graphics and audio capabilities, but do a whole lot better than XP Home.

The UI will certainly get users stoked about using it, and, since it is built on XP Pro, incorporate better admin functionality. After all, that is the usual entry point for breaches, e.g., "Simple File Sharing".

Also remember that right now, Microsoft has relaxed the hardware requirements for MCE and you can OEM 3- or 5- packs. You do not have a requirement for TV hardware, the remote, etc. Furthermore, hard drive prices are getting more ridiculous by the day.

From a consumer standpoint, Microsoft could package it as XP R2 or something, make the regular MCE as the replacement for XP PRO, and counter the perception of it's inertia when it comes to producing OS upgrades.

And if they really want goodwill, can you imagine if such a release is made gratis at Christmas-time? Coinciding with the release of XBOX 360. With a nominal fee for CD/DVD media? How many kids, of all ages, would jump at such a deal? How many XBOX 360s will be sold as Media Center Extenders?

I am talking about a minimalist entry-level OS positioned against the Mini Mac. I'm sure you'll agree that any version of MCE, stripped down, or otherwise, IS an improvement over XP Home.

MCE, as it is currently positioned, is an upper-level OS. However, MS has not released any OS upgrades for a while - pardon me, any XP upgrades, and MCE would fill that slot.

I am talking about moving the entire user base to MCE, using 'MCE Home/Light' as the entry level and replacing XP PRO with MCE. This would enable MS to leverage the huge windows user base as even more potential Xbox hosts, and allow VARs to mollify clients that have purchased Software Assurance/Licensing. And, if the rumors about a Windows Server Home edition are true, it would fit perfectly. Also, with the apparent potential power of the OS, an upgrade cycle would be initiated that would allow users to plan for Longhorn and it's greater hardware requirement.

This would make (business) customers happy and consumers delirious. And stop Mini Mac from gaining traction or mindshare