Image how upset the people who paid for WWDC will be. Just at a time where Apple could have positioned themselves to really stick it to Microsoft and make inroads in the enterprise we get this news. I'm very disappointed and shocked. You can bet Redmond is very happy with this news as Vista sales will likely be better now that Leopard will be released in October.
So where's the focus at Apple? It looks as though the Mac and Mac OS X are not the top priority anymore. It appears that Apple is more concerned with iPods, iTunes, iTV, and the iPhone. I guess when Apple dropped "Computer" from their name we should have seen this coming.
I agree with you amac4me. Apple always seems to drop the ball at just the wrong time. I guess that's what's made it such an interesting (and frustrating) company to follow!