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Azure - general question

My undestanding of azure is that it's a hosting space..... You still have to do your own setup OS, db, web server,etc. They just take care of hosting and servers correct?
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Professional Troublemaker^h^h^h^h^hshooter
Windows Azure gets you a customized virtual Windows 2008 R2 environment.
SQL Azure gets you a virtual SQL (mostly) compatible db environment.

But they aren't really hosting your 'server' for you... they are hosting your virtual server.  You aren't tied to specific hardware.  In fact, if I recall correctly... you end up using multiple virtual instances sometimes in multiple places in their data center(s).
I'm not sure if that's the case - the video on the Azure website certainly implies that it's more than that:

It seems to be saying that they supply a Windows Azure opsys as well as sone SQL database capability - but I don't know how restricted Windows Azure would be.

I'm just beginning to look into Azure as well, but their material isn't very clear.
Their pricing seems to imply that there's 2 versions, one with and one without the SQL option:

I can't imagine they would want to just supply space where you could install Linux when they can sell you a controlled Windoze environment...
My response was to original poster, not to Razmus, who seems to have beaten me to it!