This is almost the same business model IBM used on their main frame computers decades ago. I cannot see that they will get away with it, but you never know!
Also I cannot see more than a handful of daft punters going for it.
The money is in corporate businesses and they certainly won’t go for this load of old tosh.
Micro$oft how about giving the punters what they want, a fast, stable, low overhead OS at a reasonable price. Oh and how about taking the spy hooks out of it, as well as DRM and all that other rubbish that you thought we needed.