Win7 switches apps while you're typing
Never seen it, myself. Sounds like a touchpad problem.
Win7 == reduced functionality
Not that I can see. Stuff's in different places sometimes. Control panel especially.
The reorganized user files (c:\users\username\...) makes more sense to me than the older way ("C:\documents and settings"). Don't forget that NT put that whole thing under the Windows (well, "c:\NT) directory.
The only real problems I've seen with 7 are subtle privilege related problems. Some programs don't like UAC. There's a problem with mapped drives in a domain environment that I've run into a couple times and haven't solved yet that I think is a privileges related problem. And the "run as administrator" thing is an annoyance. (I
am administrator. Says right there....).
8? I've had more than once, a Windows 8 computer decide it wasn't going to boot anymore, and not let me into the recovery environment where I have a small chance of actually fixing the problem.
Server 2012 installs the vague blob interface, but boots to the desktop and pins the file manager to the taskbar. I can live with that. Install Classic Shell, and away I go.
Our customers are very happy that we can get new systems with Windows 7.