Selling software isn't dead. Its just almost dead for many people. People saw that many great things were possible with computers. You could streamline small businesses, help groups collaborate, coordinate research and so on. I feel the world doesn't think its fair that Microsoft be the final word in software. People weren't comfortable having their aspirations run under one company's flag.
Software isn't dead, in the next few years you will see some of microsoft's largest markets turn their back on the giant.
Microsoft will be big in gaming. The Xbox 360 is amazing, well done.
Microsoft will be big in the business world.
The Microsoft "Personal Computer" will be a relic, a symbol of a dark time for all of human kind and the apogee of Microsoft's reign.
Home PCs will run on Apple operating systems (based on linux) or Linux operating systems.