Interesting if real. Ok lets go for benefit of the doubt, starting with the highest priority items:
Mobile technology - The Windows phone 7 will not succeed. Sure you will sell a few phones but for the marketing and sheer executive brainspend on this you will not get a profitable return within 5 years. I had a good debate on Quora about what sucess looks like for Microsoft and I don't think this is realistically achievable: https://www.quora.com/Will-the-Windows-Phone-7-succeed-Why-o...
So the best decision would be to give up on the OS and focus on applications such as MS Office and XBOX game centre for iOS and Android devices. Alternatively buy RIM - it is such a good synergy with the current MS business and getting cheaper by the minute.
Consumer operating systems - The days of big desktop being a true star are dead, it is a cashcow at best. Why do you really need more than a XBOX / PS3 and a tablet & phone now? Focus on building from scratch an OS like Chromium that will run on a tablet, boot in under 3 seconds, have IE 9 as the browser and run office.live.com with proper offline mode. Use the Wintel partnership to get firmware optimization with this and use Dell, Acer and HP to get this new OS out on a powerfull (maybe dual screen) tablet by Q2 2011.
Browser - IE9 looks promising but it is a straight up rip off of Chrome no questions. Where is the real innovation - hire some people that will really think outside the box on a browser e.g. how about something like Cardspace from WebOS - organize browser and OS activities by task rather than by tabs and applications
XBOX - This is the one shining light in the last 5 years for MS for me. Focus on leading the industry not following it - how about a true cloud gaming service using optimized RDP or equivilent to allow full 3D rich client emulation gameplay on tablets, TV's and phones
Zune - must support full cloud based music streaming service - do it before Google music.
Augmented humanity - do something to lead and the define to way to private and secure augmented humanity: http://rakkhi.blogspot.com/2010/09/privacy-in-age-of-augment...