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VGKing said:
Not sure a gimped version of Windows 8 is a good idea for the next Xbox. Unless the next XBox can replace my PC, then I see no use for it. By replace my PC, I mean just that. If it can't do everything my PC can do, there's no reason to have Windows on a console.

You are not getting it.  If MS use Win 8 for the nextbox it will be using all of the features and stability of a mature OS.  The NextBox will still be a console, and I highly doubt a lot of services that run within the current Win OS will be there.  Instead, Win 8 on the next box gives the system the ability to do true multitasking, a much better and well defined memory management system for when multiple Apps, games and services run in the background.  

Having the same kernal allows MS to leverage there App store on all of their devices.  You can have the situation where you purchase a game on the App store and if there is a version for the tablet, PC and console, the game can be download to all devices with one purchase.  With XBL, you could start a game on the console save it at a point, pick up that same point in the game on your tablet while taking a train to work or something like that, and then pick back up with the game when you get back home.

It also make development of games easier for developers as they can target multiple devices without having to rewrite their code.  If MS allow developers to create nextBox games and sell them on their app store then it would totally fix their indie developer issues and probably would get a flood (good and bad) of game development for their console.  Also this would allow app developers to target the console as well which also could be good or bad.

You are thinking about this the wrong way.  You are thinking MS will be making the next box another PC while that probably is not the case.  Instead MS is leveraging their technology and ecosystem to create one big platform which allows developers to target multiple systems and make money.