Maybe Microsoft gives jobs to smart people and lets them work on whatever they want just to prevent those people from working for its competitors and possibly changing the game unpredictably. Microsoft has nowhere to go but down. It's probably worth it for Microsoft to pay them not to work for anyone else even with no intention of productizing their research activities.
About 95% of the 3d/multitouch interfaces I've seen so far from MS labs are cool but don't seem useful. What if in the end, a user can achieve a faster overall speed with a traditional keyboard/mouse combo?
Another huge problem to overcome with new interfaces like this is the compatibility of existing stuff. Even if I get my hands on one of these beauties, virtually no software is designed for this usage. It will take years before 3d gets a good integration into desktop software, just like multitouch has been in the works in the 90s without any (very few?) consumer level applications.
the 3D display is awesome, but there's a lot of other things required before you can give it to consumers and say "this is better than your current desktop". For instance is the 3D OS better than 2D windows? Can a user use the 3D OS for long periods of time?
What's sad is that they also patented, so the technology is effectively lost, after they develop it, and conclude it doesn't jive with their current business strategy someone else can't develop it for fear of infringement.
It's because writing a research paper, making a prototype and putting out a cool 3 minute video is much, much easier than developing a reliable, affordable, usable, consumer friendly product that fills an actual need. MS is good at the former but poor at executing the latter.
IMO it's because of MS' refusal (or inability?) to release products rapidly (unlike Google and others). When MS chooses to enter a market, they like to pour resources into it to DOMINATE within 1-3 years. If they aren't a top 2 or 3 player within those years, they pull out (e.g. silverlight, kin, etc). It's a valid strategy when done well, but it has been hurting their image as a tech leader since they've had many highly public failures.
