Porting an OS onto a new box can be technically quite interesting, but is only a fraction of the aggregate effort involved.
It's the business issues that matter. Whether you can recoup the costs, and when.
Application availability, third-party support, hardware vendor support, testing, and whether there's enough of a draw (coolness, compelling price advantage, better battery efficiency, whatever) to pull your user bases to the new platform, and pull in new customers.
There's the additional risk with whether and when key vendors will move. It might well technically be a recompile and go for the applications, though the vendors of key applications are probably going to need to see a sufficient market, or they may want some funding for porting. Vendors tend to be (reasonably) loathe to accept this porting and testing and support load without some form of revenue plan.
Emulation and translation are technically possible, though that too can be problematic; various vendors can tend not to support emulated or translated code. For understandable reasons, more than a few vendors wouldn't support their applications on Windows on Alpha via FX!32, for instance.
I'm also surprised that Microsoft is discussing this now; whether this is a cudgel on some providers, a palliative for their partners considering adding other OS platforms (Android, WebOS or otherwise), customers that are accepting other OS platforms, or whether they're really (seriously?) talking about a project and a potential product that's two years out.
Wondering what their particular motivation(s) here might be, still.