Dumky has some good thoughts on the LongHorn Developer Center and how relevant it actually is right now, as it'll be released in 2006 (maybe).
"why do a bundled late release rather than upgrade various components separately"?
Exactly my point too!
Because then they couldn't say "whohoooo! go and buy/license longhorn! give us more money!" I can see both sides personally... they want to release a full product, but I wouldn't mind an update or two to the rest of things in between. Here's hoping for xpsp2!
I don't have my hopes up too high for XP-SP2.... I suspect it'll just be some major bug/security updates, but no major features. Ie, not IE6.5, or fancy alpha-blending window transparency eye candy, or built in SVG support, or new desktop themes, or better workspace management, or better multiple monitor support, etc...
I guess in a way it's good that MS only has major releases every 2-4 years. On one hand, they do bundle in a lot of stuff, but if you look at the bigger scope, there are plentif of opportunities for 3rd parties to offer/sell more feature-rich replacements for the standard components.