Microsoft Surface is a tabletop computer designed to be in the living room. I'm not really sure of what its OS is - whether it be Windows or something new - but it seems that Microsoft has written it from scratch. Apple's iPhone is basically OS X Mobile, because the iPhone is apparently built from a Darwin kernel, and also has a touchscreen.
Which one will win the public's heart? iPhone. Now, I'm being impartial here, even though I'm a big Apple fan. Apple had better advertising with this, and because of the iPod, especially, Apple has attracted much attention to them. However, they did not invent multitouch.
Microsoft, on the other hand, licensed their OS to be run on various different computers, and so when computer-illiterate people go to buy a computer, they don't care much about OS. Heck, they think Internet Explorer is the internet! So I think it'll be harder for Microsoft to attract attention to Surface, although it's a great work of technological art, I believe.
**UPDATE: There's also a Linux competitor for Surface. Click here for more info.