That is a terrible awful name. That just makes me think of blue screen of death. A whole operating system based around the BSOD.
It is a service pack* not
'the next version of the OS' - nothing will ever be released called Windows Blue because that is simply an internal name for the release. That PC world article is a mishmash of half-truths and misunderstandings.
* although Microsoft are doing away with the service pack terminology.