Several sites are reporting that Longhorn won't be as closely tied to .NET 2.0 as previously reported. There are good reasons for this given in the eWeek.com article linked to above and it looks as if things are going to be handled in such a way that developers who are depending on the next version of .NET aren't going to be left out in the cold, even for a short time.
So why is this treated in the press as such a defeat for Microsoft? I don't know. Maybe folks are just acustomed to throwing brickbats at Longhorn because of the major features that are going to be delayed.
Jack
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