.NET was already a going concern before Longhorn even started. What sank Longhorn was the fact that writing an OS from scratch is hard and maintaining compatibility with existing OSes in the process is even harder, especially when you're adopting a completely new architecture. Longhorn would have been a microkernel running 100% on the .NET runtime, mainline Windows is a monolithic kernel written in C++. I don't know how it would have ever worked, whether .NET was "perfect" or not.