Yeah yeah, it's been doing the press rounds lately. M$'s starter edition - one which can run only 3 applications at a time [ when has even a full fledged one been able to run more ? ;-) ] - is going for commercial launch in beginning of 2005. Here's a press report on that.
Here are some reasons to be concerned: Gartner says steer clear
For instance, the OS has severely limited multitasking to the point where Windows can only run three applications at a time; reverts back to a single default desktop and removes personalization features that allow multiple user accounts on a single PC; and fails to address security concerns by not bundling an antivirus solution, a reliable patching system or materials educating users about risks to their security.
The software also lacks the ability to grow with the users as they become more computer literate.
Some other reports: