The background music, pacing, phrasing, smiling... it all reeks of Blade Runner world optimism.
It's not that I don't think the product will ever... ahem, surface: I'm sure it will, in some form. I mean that Surface won't "happen" just like the Segway never "happened," and why I can't renew my driver's license from an ATM like AT&T promised. Obviously, it's much easier to be a naysayer than to do the work, but right now, Microsoft is counting on public places like hotels, restaurants, etc... to snatch these things up. I just don't see enough already cost-conscious, internet-saavy hotel customers being willing to pay the premium rates for a hotel that sinks its money into a gadget that will, no doubt, be just a novelty for the guests. The same goes for a restaurants and their often tight profit margins. Not to mention the inevitable time-hogging such a device would create, defeating any useful purpose it may have had to begin with.
Of course, a device such as this could succeed with time, and that must be what Microsoft is betting on. Perhaps a transition into the way-too-expensive hardware/software combination is a way to protect its target market from the patent-infringing Linux developers. Can't GPL that!