We have seen that the only company currently capable of executing on the "Whole Device" is Apple.
Samsung can't do software, so they make stellar hardware and put Android and TouchWiz on it. Ditto HTC, ditto Sony.
Google can't do hardware (Nexus Q roflcopter), hence their acquisition of Motorola Mobility.
BlackBerry can't do hardware or software any more, hence they're going down the crapper.
Nokia are legendary for not being able to deliver software - oh hell, they can write it. Boy, can they write it. Lots of it. All incompatible and doing the same thing, and in development hell. Three incompatible GUI toolkits for Meego, anyone?
MS kindasorta can do hardware. Their input devices are well regarded. The Surface Pro is expensive but good. The RT is a bit of a curate's egg, and would have done much better at half the price. But what they can't do is mobile phones, and Nokia really can do that.
This is MS's play for The Whole Device. It's hard to see what alternative course of action was available, given the goal.