Yes, what they should have done is follow the format of the only successful touch OS transition in history, Apple's (the iOS move). In poker terms, they should have gone "all-in."

Microsoft should have split Metro into its own product, without the legacy Windows garbage holding it down.

Then they could have continued on with the traditional Windows as Windows 8 for desktops and non-touch devices.

Legacy Windows 8 = meh, we've already got Windows 7.

Metro = something original and somewhat exciting from Microsoft for the first time since 1994.