Semi unrelated topic, but was it not part of the old MS pricing argument that prices were what they were in part to re coup some losses on all the piracy they knew was happening. In other words, a jerk would buy a copy of office 97 and install it on 37 systems.
Flash forward to 2009, with the activation schemes and keys, its much harder to pirate the software, of course its possible, but I don't think its too bold to say they have a far better grip on that then they used too. Also, the number of computers, the volume they are gaining, and the fact that 7, really is Vista 2.0, I think of MS can afford to charge under $99 for a copy. They will probably demand more and get it.
I still think they have a golden opportunity to think about how they come to market. Its their most desire able product, why not package it with something they have been looking to gain share on? Maybe not exclusively, but I could see it peaking the interest of guys like us, and maybe converting some of us from Ipod to Zune users, or perhaps getting us into our first windows mobile device.
Also, for the love of god, Please let me download and burn my own .iso anytime I want a new license for a build I am doing. Set up a site, take my credit card number, let me buy a single use OEM licnece, burn the disk and sell that puppy. I doubt this is going to happen, but I would love instant access to a key from my internet connection rather than having to mail order a disk from Newegg all the time. Let me keep it on a USB thumb drive, install from there and activate an OEM license online anytime I need one with my credit card. Optical disks are so Windows XP :*)