MS appears to be targeting this directly towards the biggest shortcomings of the iPad. If it turns out to be a real product and is priced competitively they could actually sell some of these.

I love my ipad but it is horrible for most content creation (fantastic for consumption). Throwing in an accessible file system/USB/useable Excel or equivalent/easier access to the PITA proprietary systems so many businesses are tied to etc should sell some tablets.

Looks to be classic MSFT vaporware for now but will be curious to see how this progresses.