Most of it seems concerned with Office 12 having a new, pretty frock. If that is so, it's updating for updating's sake just to encourage users who already must have too much ready money to part with even more.
What MS should do is realise that there is some serious competition out there from other office suites - some of which are FREE and almost all at a much lower cost than their own product and consider issuing a lower cost version of their own. By lower cost, I don't mean another version of that cheap MS Works that gets shoved in the "Valuable Free Software" given away with new computers to unsuspecting new buyers.
We are using Open Office more and more. I'm seriously think of not renewing MS Office in any new machines we have.