Peter Ha and Matt Hickey for The Daily:

Let’s get one thing straight: We did not fabricate this story, nor did we fake the images in any way. A Microsoft employee, not a contractor, demoed a prototype of the app for us. We were repeatedly told that it wasn’t the final build and we did not report it as such, which is probably why Microsoft has said that it isn’t their software.

Microsoft says everything will be made clear in the coming weeks. We’ll find out the truth eventually, but so far, it looks like the blogosphere is leaning towards the idea that Microsoft is just stalling for time, and that some form of Office for iOS is headed to the iPad eventually.