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What point are you saying is dumb? They are competing operating systems. The price difference? Microsoft doesn't think it's dumb, as they are using a similar pricing strategy this time around in hope for similar results.

They're not really competing operating systems from a business perspective. Apple's operating systems are zero- or negative-margin sales that are designed to pull people into buying a very high-margin computer. Windows, on the other hand, is a high-margin product drafting behind the momentum of millions of zero-margin PCs.

Because friction in upgrading is largely dictated by the price of upgrading?

Adoption of a $30 OS upgrade is obviously going to be quicker than a $120 OS upgrade, just as the iOS upgrades have even larger adoption.

Well, that's part of Gruber's point - he makes the connection between the low price and the fast adoption rate in the next paragraph..

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