Everything else, Windows hasn't moved much on since killing off the non-NT branch. It's been good enough. Xbox is the other relative success whilst the Zunes of the world and now Windows Phone have withered. Where we're at is that Windows as a tablet OS (and touchscreen monitors, like 3D TVs) either offers very little or if people want those features they'll buy a competing brand/tech.
Windows on home PCs and the "threat" of piracy hasn't been about money for a long time, it's about having it everywhere. Same with office. Lose the momentum and allow credible alternatives to become established and both are less valuable to businesses.I just don't get the business model.
Android is likely to gradually converge further -- first add desktop OS features, get apps more feature rich, then really get onboard with tablets, phones and headless sticks you can plug into a monitor for real work. Except the headless sticks will probably stay in a monitor at home; people won't carry something they have to find another monitor to use, and big storage will be drives and NAS for a while yet. But the tipping point is likely to be that having a device with a screen that can do it will make people more open to tiny and cheap Windows-free devices.
Microsoft is betting the farm on trying to grab back or keep non-PC users by trying to be all things. There's sense to it, but it's desperate. Windows won't shrink fast enough to get onto those convergence devices, but I think Android's capable of growing up to pass them in the other direction.