If you are, you are not in the computer industry.
To me, this news is only to be expected. Vista is not a flop, but the adoption rate is too low to justify cutting of XP downgrade rights. There are still a lot of companies who based their system on XP. Not offering them XP downgrade rights will mean they got a very good reason to try out the alternative, as the IT department will come out and say “I cannot get an XP for you. Your only choice is Ubuntu as it is the only operating system that can reasonably work with the corporate system as our current one does not support Windows 7 and we are not going to transition to Windows 7 anytime soon.” Nightmare scenario for company IT division and, of course, Microsoft.
That is not to say I like the decision at all. I always said XP must die, and I do hope Windows 7 will finally kill off XP.