It's possible they're kind of admitting defeat with PC enthusiasts and will just settle for the average user and the business user. If they're smart they would make windows home free to use and then charge a fair lump for K2 (and make it extremely good - yknow - things software companies should be doing). That way it's a PR win and they can exploit both business models.

I strongly expect Microsoft to completely bottle it as usual though. They have some deep corporate rot imo.