Having a trip home that almost endured 20 continuous hours, I can assume to have had suficient time to digest most of what I saw at PDC05.
Microsoft is striking hard on several fronts, many previously/currently held by partners, others by competitors.
For instance, the new Windows SharePoint Services and Office Server (formerly SharePoint Portal Server 2003?) support, out-of-box, both workflow (sitting on top of Windows Workflow Foundation), records management and auditing scenarios, not to mention the rest of the new and improved features. This poses a direct threat (or opportunity) to companies who currently have solutions based on WSS and SPS2003, such as Records Management or Workflow, since customers who buy/use the new SharePoint won't have to built/buy on top of it to get these features - at least for the most obvious, generic, common cases.
The market will be put into a cocktail blender, and if the recipe is right, we'll all get a nice new cocktail - please do read «market» 
So, currently, we have a lot of products and solutions in market that build up from WSS and SPS2003 to answer what these couldn't address on their own out-of-box. These are mostly horizontal. Some vertical efforts have been done, but not that many so far (I mean, not that many as horizontals ), maybe because these products still had to mature and opportunities were more easily identified on the «lacks» and «don't have».
This cocktail blender thing will probably scare a lot of people, but I really think there's a lot of new opportunities out of this situation. The new WSS and Office Server will empower developers by freeing us from having to code a lot of stuff that should be there, and allowing us to concentrate on the business layer and end-user experience - thus addressing directly our clients' needs. Just think about it: someone is doing all the dirty work for you, and you can now use that to build better, more responsive, fast paced and adaptable solutions for your customers.
A lot of people will also be happy to know that site definitions are now easier to make - still may not be perfect, but the entire process has now become more... developer friendly.
Please understand this: Microsoft is stating (read screaming) loud and clear «SharePoint is here to stay». This technology will be the next enabler for most businesses, allowing people to be more productive, have access to information when they need it, and empowering business to act fast thus generating more probable wealth or value-added. SharePoint will be the core of IT for end-users, or information works if you choose to address them that way, enabling them to get what they want, faster and more reliably, enabling new business processes adaptability, thus, fast business reactions to market changes.
So your efforts and investments have not been put to waste, on the contrary, you will be more empowered than ever.
CEOs, CTOs, Vice-Pres'es and Mary Daisy from downstairs - they will all love it!
So, don't panic - just set your mind to «creative mode»: GO DIAGONAL
By the way, as I was about to submit this post, my RSS feed reader just let me know that Patrick published his reflections on this PDC05 news as well, so I don't feel alone anymore 
Be sure to keep an eye on The Future of Microsoft Office.