but since a lot of smart phones have these extra micro sd cards with capacities of up to 32 GB couldn't MS use the smartphone to supply your Windows install software - and it would be much easier to trace any pirating since Ms would have details of the phone the software was downloaded to. The software could be downloaded any time convenient to you during the day when your phone was connected to a wireless network.
You would then just plug the smartphone into a usb slot on your computer and install Windows just as you would normally from a USB device.
Saves all this messing about with manufacturing and distributing CD / DVD's -- and Ms would have a decent audit of who purchased W8 if the copy got "into the wild".
Far too many privacy issues with this. Why should Microsoft be allowed access to details of the mobile 'phone? It wouldn't be allowed within the European Union is my assumption.
In reality it doesn't matter if a copy gets into the wild, except that there's no guarantees that there's no malware inserted into it. If Microsoft recognizes that an activation key is being used on too many computers, it can remotely invalidate those computers.
I've kind of wondered this, but the SD card approach. Since there are decent Windows 7 slates out there, and android tablets with SD card slots, heck, even getting Windows 8 on an ipad; that would be pretty cool. And it would be a serious middle finger to apple!