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Windows intros 365 Link, a black box that does nothing but connect to Microsoft's cloud
(www.theregister.com)
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And that’s basically it!
You're right. It's still stupid though.
Companies should be at least as concerned with privacy and autonomy as individuals. Running everything on Microsoft Clouds, with Microsoft Windows and Microsoft Office makes you massively vulnerable to the whims of Microsoft. And many of the potential customers are actually Microsoft's competitors on some level.
Thin clients may be a good model for some businesses, but this device particularly seems to be tailored to use only Microsoft's Azure cloud as opposed to self-hosting. Moving the computation to Microsoft's cloud doesn't make it inherently safer.