I think that it is not exact. OS is as important as yesterday since you need them to run your containers that provide your services used by your thin clients. This is still the backbone of everything. But you have a point windows kinda lost the servers battle.
yeah. I think they have did some refactoring in OS though, to make it more modular. Not sure what are their long term plans for Windows. They probably would have benefitted from some handheld UI for sure.
They tried a handheld UI, with Windows phone but it failed. I think mostly because their UI was too far from what people expected aka something looking like ios (Android UI is almost a copy of iOS UI) and also because they came into the market too late with too few product innovations to be appealing. With 5% of market shared, this was not worth the cost, for devs on the plateform. If they want a comeback in the smartphone industry, maybe they have something to play with copilot and AI. Like an Android with free AI agents out of the box.