>Windows is on life support and they know this.
How is Windows "on life support"? Desktop/laptop computers are not going anywhere, at least until they invent some kind of VR (and no, mobile OSes like iOS are not suitable for doing real work and managing data in a networked environment the way desktop OSes are). Windows still has at least 90% of the OS market. People and businesses could change to an alternative, but they just aren't, and they aren't going to unless something really drastic happens to force them to (and this would likely have to include many popular applications also providing support for one or more of the alternatives). In the business/enterprise world at least, there is simply no indication that Windows is in any danger at all of losing marketshare or revenue, in fact it's probably going to increase since businesses seem to love the software-as-a-service model.
MS could probably just make Windows free for home users (and make even money on them with advertising and selling telemetry data and also support calls), maybe small business users too, and then soak the big businesses with high fees for their site licenses and SaaS and other services.