It's certainly not obvious that reporting directly to Ballmer is going to provide the leadership that Entertainment and Devices needs. In spite of running one of the largest technology companies in the world, Ballmer isn't a technologist. That may be fine for the day-to-day management of Microsoft as a business, but it's fatal to Microsoft as a breeding ground for top-notch technology that can compete with what's coming out of Cupertino and Mountain View.