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M$3 Answers
(I think I got the succession right there... maybe)
Regardless, the reason MS was so gung-ho to get a new OS out there instead of just upgrading Vista is because Vista has gotten a HORRIBLE reputation since it came out. Everyone and there mother thinks Vista is just terrible. So MS isn't trying to salvage the name, they're trying to release a brand new product with (more importantly) a new name.
Consider a businessman who buys a restaurant. If the restaurant is doing very well and has a good reputation, he'll leave the name the same and try to make the change in ownership as transparent as possible. If it could be doing better, but has a loyal following, he might put up a sign saying "Under New Management". But if the restaurant is doing horribly and people actively avoid it, he's more likely to change the name, the signs, the uniforms, etc, and make people think it's a completely new restaurant.
Vista is the old restaurant everyone hates. Windows 7 is the completely new restaurant.
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M$2. Microsoft wants to abandon the "Vista" brand as soon as possible, as it is the brand that's given them the worst reputation since Me.
Personal experience, been using Windows 7 primarily for months and am using it to write this right now!
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M$Also Windows 7 has a lot of new UI bits especially the changed taskbar, so that'll help people think it's not just improved Vista.
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M$
I think my fingers would have fallen off if I tried going through all the DOS versions as well... :-P
haha...I love the restaurant analogy...only problem, you forgot DOS =(