Sounds like FUD, especially seeing who the article is coming from.

might as well get world new posted from the onion. Why w2s gets news from the inquirer over and over i will never understand.

What they say makes sense in a way. That's what I originally thought too when I heard about the desktop being rendered in 3D. However, from what I've read... it does seem like Vista completly disables everything that has to do with the desktop when a fullscreen DirectX game is run. Part of which explains why MS is saying it will be faster. I agree with the other comments here, pretty sure this is regular Inquirer style guess-reporting.