SharePoint 2007 is far more feature packed than SharePoint 2003, which is what Microsoft wanted to make sure of. They have also made SharePoint 2007 even more extendable that 2003. This means that not only can you immediately take advantage of the existing base of features, but you can also develop your own features. For example, any WebPart that can be activated is considered a feature. Any point of functionality that makes SharePoint more useful, like base column types, is a feature. And any piece of functionality that you can create in SharePoint that can be used by SharePoint or other users is called a feature. So when you really look at it, Microsoft picked a pretty good name … which is what confused me at first because a feature is just what it sounds like… and I did not expect that.