My take on this is that the Microsoft's strategy for the Surface wasn't necessarily to sell a ton of Surface tablets and take out the iPad. I think it was to illustrate what Windows 8 brings to the table in terms of a hybrid tablet experience. This is similar to how Google had lackluster sales of their Nexus phone but it was a reference model of what you could do with Android. The Surface opens up some eyes to the idea of the "convertible laptop", which I think ultimately is how Windows 8 starts to make more sense. On any other configuration it's a clunky experience. Windows 8 is a poor tablet experience and a lame desktop, but as a convertible laptop it's actually quite enjoyable (in my opinion).