> Windows Lite is $49 for a permanent license. No subscriptions.

That will never happen. Much as I hate everything being subscription based these days, there is too much effort involved keeping it updated for security changes and dealing with advances in hardware for a cheap lifetime licence to be practical. The best we could hope for from them would be a buy-a-new-one-every-few-years model similar to how Windows and Office used to be sold to no-corp users.

MS would be better off ditching Windows for non-commercial users and concentrating on Azure, Office (pivoting more completely to online versions), SQL Server, and AI services (assuming that bubble doesn't burst too damagingly soon), with a few other things that prop these things up a bit largely by driving people to host them in Azure (VisualStudio & VS Code, DevOps, Exchange, Outlook, Teams, Windows Server for corps who need/want to self-host, Windows Desktop for corps only). Windows desktop for corporate use only makes things a lot easier - they can limit the hardware support needed to a whitelist, and discard a lot of backwards compatibility tech-debt, and so forth.

What would everyone else do? Use Linux or Apple, or one of the BSDs. They can still run VSCode (and maybe VS if that gets ported) to produce things hosted in Azure, they can still use hosted versions of Office/Outlook/Teams or perhaps even VS, so they aren't lost customers for the things that MS actually makes good money from (Windows Desktop has long since stopped being the cash-cow it once was). PC gamers would end up moving to consoles (or console-a-likes from the likes of Steam) including MS's offering if they keep in the games market.