Well,
According to many blogs, like this one, and this one, and finally this press release, Microsoft is releasing Windows in multiple flavors again. I'm not rehashing the editions here, but I'm going to offer a different opinion.
Many of us are angry or annoyed that we once again have to choose, but another industry does the same thing, it's called the auto industry. They release cars in multiple editions that offer larger engines, more interior room, or safety features not available on base model. That's fine, but if you're going to offer those additions, then offer features people want.
Keeping with that argument, if Microsoft really wants to call it "Windows 7 Ultimate" then make it Ultimate. Give us something with Ultimate that if purchased separately would be rather expensive. Examples include, a free Zune (or one at a seriously discounted price, say 75% off), or even Office Professional, or Windows Home Server, or even the Expression Suite. I would spend extra money for those options, not some game or a desktop slide show feature I could care less about. Bundle it with something that people want.
In terms of pricing, here is my opinion. We all know the "Vista Capable" of last year, and how it really wasn't that capable at all. Why not offer consumers the choice to upgrade for nominal cost, say shipping and handling? I know Windows costs money to research and develop, but it can't be unobtainable, or consumers won't buy it.
Those are my 2 cents.