They’re all right.
There are two things MS got right: Metro and the developer tools. Everything else has been average (updates) or subpar (hardware).
They could gain ground by moving faster, improving quickly and chipping away at marketshare over time (like Chrome did to Firefox and now IE). They seem content to go slow and steady like they did with the Xbox.
What they should do: change the name, make their own hardware (buy RIM and Nokia to do that), and move faster.
What will happen: they’ll plod along, get submarined by Windows 8, and continue having way too many devices.