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With a launch site that looks like it was put together in a weekend by a 7th grader: http://www.microsoft.com/surface/

I'm being honest here; simplicity is one thing, but this isn't exactly competing.

I'm not sure I follow your argument that they can't compete in the hardware/software market based on the design of their webpage. Scroll down the About page [1] and I don't see much that's different from the iPad page [2].

[1] http://www.microsoft.com/surface/en/us/about.aspx

[2] http://www.apple.com/ipad/