Office included on Windows RT

Microsoft have confirmed that Word, Excel, Powerpoint and OneNote will be included on Windows RT devices:

Windows RT is the newest member of the Windows family – also known as Windows on ARM or WOA, as we’ve referred to it previously. This single edition will only be available pre-installed on PCs and tablets powered by ARM processors and will help enable new thin and lightweight form factors with impressive battery life. Windows RT will include touch-optimized desktop versions of the new Microsoft Word, Excel, PowerPoint, and OneNote. For new apps, the focus for Windows RT is development on the new Windows runtime, or WinRT, which we unveiled in September and forms the foundation of a new generation of cloud-enabled, touch-enabled, web-connected apps of all kinds.

I'm particularly intrigued that the announcement states that "RT will include touch-optimized desktop versions", which suggests these applications will not be of limited functionality, but full versions.

I wonder what the ramifications of this inclusion will be; how much leverage does Office have? Will this influence sales? By this inclusion, is Microsoft targeting particular markets?, will Windows 8 follow suit with a full or perhaps cut-down version?