Here's a cut-n-paste of my statements;
DX10 =/= WGF1.0 it would be WGF2.0 if anything.
It's more like they came up with WGF1.0 for the basis of Vista/Longhorn, and then didn't like the foundation and increment part. WGF1.0 seems to still be the core, but it's reverting to IT's old name of DX9.0L. DX10 will be a separate add-on as is the case now, but unlike the current system DX10 will be far better integrated into the OS, and legacy support for DX9 and OGL will run on separate paths in compatibilty mode outside of the kernel level support, with OGL likely being significantly slower than it is now (meaning you Quake4/Riddick fans beter keep your old systems/OS). Thus annoying many developers (Carmack had stated he's focusing on DX), and probably striking a big, if not fatal blow, at OGLs future game development, and thus hurting both Linux and Apple's hopes for gaming converts, and strengthening M$' position overall.
Understand that DX10 is not VISTA and vice versa. DX10 does not need legacy support, VISTA does. And as such you won't need DX10 to run VISTA, but you will need vista to access DX10. So your GF7800/X1xxx might not work with DX10, but that doesn't mean you're hooped, you just don't get that full feature set, and maybe because of it you miss out on potential performance because it's running it through compatability mode.
To me this is a fine idea if it means DX10 works awesome for the new cards at the expense of DX9 being not integrated, that's fine with me. The idea of a unified driver almost always means compromises, so I'd rather see Windows limit support of DX to the generation it's intended for and update and optimize them independantly. Of course this likely means that the older DXs will get left behind in the future the way that the older OSs do now. It might also mean that there are compatibility issues the way there was with many things and their drivers with XP.