This is suicide. Goodbye MSFT. They're losing out on an entire generation moving to mobile devices, which increasing do not require a Windows license (iOS, Android, WebOS, QNX/Blackberry).
If anything it seems like Windows 8 will be a better fit for tablets than WP7. I'm not sure if porting Windows 8 "down" to tablets or porting WP7 "up" to them really makes a difference.
There is currently no reason why they can't have apps written for WP7 running on Windows 8 tablets, or at least make it easy to port existing XNA and Silverlight apps over. WP7 might have a nicer UI, but it seems like MS is giving Windows 8 full touchscreen support.
There is currently no reason why they can't have apps written for WP7 running on Windows 8 tablets, or at least make it easy to port existing XNA and Silverlight apps over. WP7 might have a nicer UI, but it seems like MS is giving Windows 8 full touchscreen support.