Starter 2007 will allow only three applications (and/or three windows) to run simultaneously
So a person who doesn't know what they're doing will spend 10 minutes connected to the internet, after which their PC becomes a paperweight with Bonzi Buddy, Weatherbug and Gator/gain on it?
Anyway, the *reason* is of course so they can double-dip -- by introducing an excessively crippled version, they can sell a whole lot more copies of windows: first the system builder can pay them a (slightly discounted) fee to bundle the craptastic edition with a new PC they sell, so they can offer a slightly cheaper PC. Joe user who doesn't know any betters buys the system, and before long it pretty much becomes unusable and they'll shell out for the 'normal' version of windows. Ca-ching!
Microsoft gets to make money twice on the same PC.
Brilliant scheme, really... Maybe next they'll start selling insurance, too. Nice computer you have there. Shame if anything... were to, you know, happen to it. Real shame.
Of course, the *real* scheme is the upcoming 'Windows Live' plan, thats in the works, where you get a 'cheap' copy of windows and get to pay a continuing rental/usage fee. Of course, the only thing that will do is make sure that people who can't afford windows in the first place get to pay for it many times over spread out over a longer timeframe.