WPC was indeed Texas-sized this year with over 10,000 people in attendance and 4 days of packed action. Needless to say, I'm yet to fully recover from all that happened in Houston :-)
Software+Services and CRM both were heard all across the conference. Even though wall street doesn't very much agree on Microsoft's online investments, like Ina Fried, the attendees of WPC knew Microsoft's huge potential in this market. Of course Microsoft will continue to invest in its on-premise software and server applications as well.
On-demand software will be hot in markets like US and Europe. However partners from the Middle East and Asia seem to disagree. After talking to them, I realized that infrastructure improvements still needs to happen in many places around the world. At the same time, industries with enough wealth and resources don't want to cut corners by moving to on-demand software. No wonder making CRM 4.0 available both on-premise and on-demand resonates well with our customers.
By the way, don't worry if you missed the action at WPC. You can always watch the major keynotes and breakouts from WPC on demand at http://www.microsoft.com/digitalwpc/.