And by many accounts, Windows 7 is poised to do just that. Unlike Vista, it was completed on time. And unlike Vista, early reviews have been positive.

“Even in beta form, with some features incomplete or imperfect, Windows 7 is, in my view, much better than Vista, whose sluggishness, annoying nag screens, and incompatibilities have caused many users to shun it,” Walt Mossberg said of the OS back in January. “It’s also a serious competitor, in features and ease of use, for Apple’s current Leopard operating system.”

So Microsoft (MSFT) has good reason to be proud of this release-to-manufacturing, or RTM, milestone. There’s a lot riding on Windows. And the company seems to be very much on point as it brings the newest version to market.

“Today’s release is the result of hard work and collaboration with our partners in the industry to make Windows 7 a success,” wrote Microsoft’s Brandon LeBlanc in a post to the Windows 7 Team Blog. “We delivered Windows 7 with a predictable feature set on a predictable timetable that allowed OEMs [original equipment manufacturers] to focus on value and differentiation for their customers. We continue to be overwhelmed at the community’s response to Windows 7 and it has been an extremely rewarding experience to witness. We hope the enthusiasm will continue to grow even more as our partners build amazing experiences with their products and Windows 7.”

Ironically, this particular build of Windows 7–Build 7600.16385–which Microsoft designated as RTM, was leaked to the Internet nearly a week ago and has been available for download via BitTorrent ever since.

Astonishing, really, when you think about it. In just 12 months, the App Store spawned a thriving developer ecosystem, a new gaming platform and a half-billion dollar software marketplace, an unprecedented achievement in the mobile world. Certainly, Apple’s rivals have all taken note of the company’s success and adopted similar approaches to distributing mobile applications, though–as Jobs notes–it’s going to be tough for them to ever match Apple (AAPL).

Oh, one last point worth making here. You know Steve Jobs is back, really back, when he’s talking smack about rivals in an Apple press release…

Below, a breakdown of apps by category and a graph of their growth over time, courtesy of 148Apps.biz. Click on the charts to enlarge.

“Reaching more than 1 million downloads so quickly is a strong testament to our world-class programming and Sirius XM’s instant brand recognition,” Scott Greenstein, president and chief content officer, said in a release trumpeting the milestone. “Our goal is to give people access to the best audio entertainment wherever they go with what we think is the best music and audio entertainment application available on the App Store.”

The app, which debuted on June 18, quickly became the top free offering in the the App Store’s music category and has held that spot for some time now. So it’s certainly one of the more popular music apps available. That said, it’s also one of the most poorly rated. Sirius XM’s app has an average rating of just two stars out of a possible five. Of its 56,952 user reviews, just 8,822 give it five stars. But 37,818 rate it a single star. And most of those do so citing Stern’s absence as the reason. So while it’s true that Sirius XM Premium Online is the the top free app in the music category, it’s also seems to be its leading disappointment. Makes you wonder how many of those one million downloads were deleted, either after the user noticed Stern’s absence or the $2.99/month subscription fee.

But far from the last, I’m sure.

A few weeks back, this sort of update never would have made it into the App Store, but now that the device supports age restrictions for applications, Apple (AAPL) has adopted a more permissive stance toward
“objectionable content.” Browse the Hottest Girls page on the App Store and you’ll find the following warning:

“You must be at least 17 years old to download this game.
Rated 17+ for the following:
Frequent/Intense Sexual Content or Nudity
Frequent/Intense Mature/Suggestive Themes”

“Frequent/Intense Sexual Content or Nudity?” Interesting. It would seem then that Hottest Girls isn’t just the first app to boast nudity, it’s also the first to set up shop in what may become the iPhone’s red light district. It will be interesting to see to what uses the adult entertainment industry can find for the iPhone’s accelerometer….

UPDATE: Apple seems to have pulled the app. It still appears in the iTunes store, but it’s apparently no longer available for download.

UPDATE: The developers of Hottest Girls claim the app wasn’t pulled; it sold out. “The Hottest Girls app is temporarily sold out,” they explain. “The server usage is extremely high because of the popularity of this app. Thus, by not distributing the app, we can prevent our servers from crashing. Those who already have the app will still be able to use our app. To answer the question on everyone’s mind: Yes, the topless images will still be there when it is sold again.”

UPDATE: Apple now says it was indeed responsible for pulling the app.

“Customers are voting and the iPhone is winning,” Apple CEO Steve Jobs said a press release today. “With over 50,000 applications available from Apple’s revolutionary App Store, iPhone momentum is stronger than ever.”

An impressive showing. Particularly considering all the factors that could slow sales: The souring economy, competition from the Palm (PALM) Pre, the BlackBerry Storm, the T-Mobile G1 and, of course, the iPhone itself. After all, there is now a $99 iPhone on the market. Beyond this, there’s the fact that the 3GS was launched in eight countries. The 3G debuted in 21.

Interestingly, this is the first time we’ve seen Jobs quoted in an Apple release in some time now. As best I can tell, the last quote attributed to him was in a Jan. 21, 2009, earnings release. Since then, Apple (AAPL) has issued 22 more press releases. This is the first in which it is Jobs, and not COO Tim Cook or Phil Schiller, Apple’s senior vice president of Worldwide Product Marketing, who is quoted. Does this mean he’s officially back at work following his medical leave? I’ve put that question to Apple and will update if I hear back.

[Image credit: Gizmodo]

“Over the course of the past year, we have seen use of mobile Internet evolve from an occasional activity to being a daily part of people’s lives,” said comScore’s Mark Donovan. “This underscores the growing importance of the mobile medium as consumers become more reliant on their mobile devices to access time-sensitive and utilitarian information. Social networking and blogging have emerged as very popular daily uses of the mobile Web and these activities are growing at a torrid pace,” observed Donovan. “We also note that much of the growth in news and information usage is driven by the increased popularity of downloaded applications, such as those offered for the iPhone, and by text-based searches.”

Obviously, the mobile browsing experience hasn’t yet matched its wired counterpart in quality. But clearly it’s getting there. And right now, it’s at the “decent enough” stage to woo the audience that will drive its further and more rapid improvement.

At issue here was whether the sale of digital music downloads falls under the “distribution” agreements that cover physical releases like CDs. FBT argued they do not, claiming that the label incurs none of the costs typically associated with them–things like CD jewel cases and inserts, breakage fees and in-store displays. Instead, the production company said that downloads should be covered by “licensing” agreements that don’t include such expenses. And the difference between the two is significant: Under distribution deals, artists typically take a 30 percent split of royalties earned. Under licensing deals, they take 50 percent.

But the jury didn’t quite see things FBT’s way and instead bought Universal’s argument that the economics for digital downloads should be viewed as similar to those of the single. A nasty blow to FBT and other artists hoping to see their royalty rates adjusted to account for the new economies of distribution provided by digital music storefronts. Seems that much as technology has changed the relationship between musicians and their fans, it’s done little to change the one between musicians and their labels.

If Amari can recall when that was Sony’s image, he has a good memory. Because Sony (SNE) lost its dominant position in consumer electronics to rivals in Japan, South Korea and the U.S. long ago and has yet to regain it.

And nowhere is that more apparent than in the the company’s videogame division, which really should be the shining star in Sony’s core electronics business. Sales of Sony’s Playstation 3 console fell 19 percent year-over-year in November, according to NPD. This while sales of Microsoft’s Xbox 360 rose eight percent and sales of Nintendo’s Wii doubled. U.S. consumers purchased two million Wii consoles and 836,000 Xbox 360s last month. But they bought just 378,000 PS3s.

Ugly news for Sony and for CEO Howard Stringer, who’s promised the company’s games division will turn a profit this fiscal year after two years of losses. Clearly, Sony’s going to have a tough time managing that. No easy task peddling the $399 PS3 to a public that would much prefer to spend $150 less on the Wii.

10,000 apps. An impressively broad ecosystem for just under five months of development. Apple’s (AAPL) year-end list of Top App Store Downloads for 2008, then, is both handy and timely (Click on the image below to see the top 10 paid and free apps). It’s largely what you’d expect, with the Games and Entertainment categories proving most popular, Facebook and Pandora dominating the Free App category, and Texas Hold ‘Em and Moto Chaser topping the Paid App category. Fascinating to see the breadth on display here. Were you to purchase every app currently for sale at the store, it would set you back in excess of $30,000.

If the [iTunes music store] was forced to absorb any increase in the … royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss–which is no alternative at all. Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”

– iTunes vice president Eddy Cue

Not that it would ever have happened anyway, but Apple (AAPL) will not be shutting down the iTunes Store in protest over increased royalty rates paid to songwriters and publishers for CDs and digital music downloads. The Copyright Royalty Board Thursday left the rate for royalties unchanged at nine cents a track, paying no mind to a proposal by the National Music Publishers’ Association that would have raised it to 15 cents–a 66 percent hike.

Seems Apple’s posturing paid off. Said Apple spokesman Tom Neumayr, “We’re pleased with the CRB’s decision to keep royalty rates stable.”

More interestingly though, Rose says that Apple will uncrate iTunes 8, the first major overhaul of the software since iTunes 7 launched two years ago. Rose claims that iTunes 8 will boast some significant enhancements, among them HD-quality TV show downloads, a new “grid view” browsing feature and a playlist recommendation engine called Genius. “iTunes 8 includes Genius, which makes playlists from songs in your library that go great together,” Rose writes. “Genius also includes Genius sidebar, which recommends music from the iTunes Store that you don’t already have.”

Notably absent from Rose’s list of new features: iTunes Unlimited–the $129-a-year all-you-can-eat subscription service that Apple has been rumored to be considering for some time now.

Like all such reports, Rose’s should be taken with a grain of salt, if not an entire salt lick. Rose was, after all, the guy who erroneously claimed Apple’s first iPhone would feature a slide-out keyboard, dual batteries and CDMA, and GSM support.