Yeah and their main competitor is less confusing?  There are two main version of Linux in Debian and KDE, but how many diffrent kernals do they have?  As for Apple they release new version of their OS so much they basicly have multipul SKUs.

what are exmaples of a application?

@ jaggedsac and gnizmo - no-one has heard of them because they weren't released in the USA/UK/Aus/Canada etc, 7 starter will be. 7 home basic will not be released over here, meaning you will have to pay the price for 7 home premium if you want to run 4 applications.

@ broken - basically anything your computer does - word, itunes, IE/firefox, solitaire. Apparently some background tasks like Windws defender get an exception, as long as you dont open the main screen for it

 Then maybe you shouldn't have started by whining about the three application limit. Infact, the article you have linked has absolutely no mention of the price of any of the various editions for Windodws 7, bor does it say where they will or won't be released. If you want to run adround and cry about something at least make sure it is worth crying about, and make it clear what the actuall problem is ratherthan shifting gears the second your original comlaint is shown frivilous.

UNIX is definitely not a DOS. You can't even run any DOS applications with UNIX or vice versa and commands, file systems etc are all different. And UNIX had been around over 10 years before DOS was even created (according to wikipedia UNIX was created in 1969 and DOS in 1981).

The point is not confusion, the poing is using a tiered price structure to ream every last cent from the market. Linux (as confusing as it is) is free. Mac OS isn't, but they aren't pushing Mac OS Starter, Mac OS Home, Mac OS Business and Mac OS Slim. It is true that Apple in the 2000's has released more versions of its OS but it appears MS is accelerating...

@ Gnizmo - if you don't think it significant then I'm not going to try to convicne you it is. After all, it doesn't effect you because you clearly know enough about computers to not buy this version. However, I would like to go on record predicting that there will be a massive uproar about this after the release of 7, with many people saying that

They didn't know Starter could only run 3 applications

Home Premium is too expensive

I also predict that both Mac OSX and the sum of all forms of Linux will gain marketshare during the lifetime of Windows 7

I also go on to predict that Windows will use the 3 application limit to further hinder forms of antivirus besides Windows Defender

You don't really have to have everything opened at once anyways.

 You make one extremely faulty assumption though. You assume that Windows 7 Starter will be as readily available as the other two versions. Microsoft is already on record as saying they only want netbooks to use the slimmed down OS, and see the vast majority of users buying either Home or Professional. They are also in hotwater over the misleadings "Vista Capable" sticker that were being handed out, and have gone on record as saying they want to be extremely clear the limitations of the Starter choice so as to prevent upset customers who bought the wrong product.

 You really are showing that you just want to slam Microsoft for this one. Seriously, calm down and do a bit of research on this (and I mean simple as google it) and you will see some blatant innacurracies of your claims. Antivirus software is already confirmed to not take up one of the three application slots. You seem to have Microsoft painted as this horrible, evil corporation that just wants to harm consumers, and that is completely wrong. They are a horrible, evil corporation that wants you to spend all your money on their products forever and ever. Just like every other major company in existence.

So What.

Starter is for budget computers. Computers that would clunk along if it had more then 3 apps open. It may even be for Netbooks that are on the cheap. However it gives a benefit to those users they won't be leaving apps open. Unlike half of the users out there for any OS and then wonder why it runs slow.
This si far from a big deal it is far from a change in policy and it is far from actually affecting 99% of the market where it woudl be considered an issue.