Windows blue to my knowledge is simply a change in how windows version updates are issued and handled. You essentially buy an upgrade disk for a low price similar to apple's releases. They don't change the entire ui and whatnot with every release. Its more minor updates similar to a service pack but with a little bit more value added software included.
Correct me if I am wrong anyone.
Hard to really correct you or assert you are correct, when few really know that much in way of details.
Early releases are Alpha, and Windows alpha releases hardly change much beyond some kernel tweaks when compared to the last RTM.
But yes, current information suggests "Windows Blue", likely to be titled Windows 9 or perhaps Windows 8.1, will be more or less a glorified Service Pack a la Mac OS X releases.
They may continue kernel point releases (6.0, 6.1, 6.2 - aka Vista, 7, 8) but shift that into yearly releases and slow down new features, or may do the opposite. Kernel may not change from one year to the next, or if it does the next may be 6.2.9300 but I'd expect the new trend to start with 6.3. The current standard tends to see x.x.9000-something as the final release version. So, perhaps the next one is 6.3.0.900, and the next stable release may be 6.3.2.400. Of course I'm just throwing numbers around, I have no idea how Microsoft intends to treat kernel updates between yearly releases. They might focus on more consumer-focused features between each release, with maybe every other or every three releases seeing a new major kernel point version (wonder what NT 7.0 will bring us) alongside new enterprise-focused features as well.
Or perhaps Windows for Enterprise will kind of split off, be a middle-man between the frequency of Windows Server releases and the yearly consumer releases... with the major kernel changes happening in each Enterprise release, and the consumer release of that particular year matches it and then continues the yearly mild-upgrade release cycle until the next Enterprise version drops.
That sounds like a reintroduction of convoluted Windows releases, so I kind of doubt that is what they intend - but this yearly cycle is going to cause some chafing in the enterprise world. Though, IIRC, any post-"Blue" Windows Store apps are supposed to be compatible with any version released after "Blue." How they intend to pull this off, I don't know. Then again, I may have just pulled that out of my bum. That could mean they don't plan on major overhauls all that often, and expect they can get away with only minimal changes to the base WinRT code platform.