It's been a while since Microsoft has released a version of Windows that was supposed to run 16-bit apps natively. Microsoft started to move from supporting a 16-bit OS with Windows 95. Lately, the company has been trying to get customers to go the 64-bit route with newer versions of Windows.
Even with a 64-bit version of Windows available for the upcoming Windows 8, Microsoft will still offer a 32-bit version of its next operating system for sale for x86-based PCs. Of course, some apps won't be able to perform as well on a 32-bit version of Windows 8 compared to a 64-bit port. However it appears that's not the case for all apps.
In response to a comment from a user, Microsoft has revealed in a new post on the Building Windows 8 Twitter page that people interested in running much older software can still do so on the 32-bit version of Windows 8. Microsoft states: " ... you can run 16 bit apps on 32 bit Windows 8. 64 bit doesn't include the subsystem at all for a variety of reasons."
For people who are still holding on to their floppy install drives to run older Windows program, that's good news indeed.