I don't know why analysts and PRs keep touting tablets as the Panacea of the PC market. The tablet was a new trend that some people bought into. It's not that big of a deal. Desktops are more than alive and kicking, the problem is the need to upgrade them is becoming less of a need unless you're into gaming. 5 or 6 years ago Intel released the dual core. For doing e-mails, word documents, and playing simple games it's more than powerful enough. The CPU is becoming less and less of an important factor, especially since most PC gaming performance can be improved simply by replacing your GPU. Smartphones on the other hand are still fairly new and many people demand their phones work faster. So there is much work and profit to be made on that front. However, that too will one day reach its peek and the only reason you would upgrade your smartphone is to play better games. I'm pretty sure by then you will see smartphone sales slump.
I don't think Windows 8 is a terrible OS. I do believe their tile system should have been installed and ran as a normal app rather than integrated into the desktop, but the OS itself is nothing to fret about. Windows 8 is essentially Windows 7, with minute changes like the tile system and overall system improvements. Hardly worth upgrading to. As far as Surface and Windows 7/8 phone goes, well... That was not an innovation. Microsoft is doing exactly what Apple is doing. Being a tyrant and walling off innovation and freedoms by putting a tight leech around the necks of all developers and consumers so that they can make more money off the platform. Unfortunately for Microsoft, there's only room in this industry for one tyrant and Apple was here first. Had Microsoft opened up their platform and offered more choices for developers and consumers, just like they do with the desktop, then I think we would be reading a more successful story today. Alas, it will take Microsoft a few more slumps before they catch on that platforms like Android are preferred, just without the messy fragmentation.