On checking out Windows 7 for the first time I, like many of you would, noticed that the Show desktop icon is missing. This was one feature I had used regularly and was the first icon in my Quick Launch bar ever since I had started using Windows XP. However, on closer inspection I found the feature which works, as some would say, with a little more grace that its predecessor.
So though the Show desktop icon is missing the functionality is very much there and is a part of Windows 7 Aero Peek.

Do you see the glassy icon located to the right of the system tray... well, that's the show desktop of Windows 7. However, it is better to refer it as Preview desktop as it doesn't close any open windows. The windows remain open but they become transparent with only the outlines showing - elegant and smooth!
This show desktop on Windows 7 is a part of Aero Peek functionality in the new operating system which lets you "peek at opened windows" and quickly navigate to the desired one. In Windows Vista, when you mouse over the window tab in the taskbar, you get a small thumbnail, right? In Windows 7, the thumbnail is larger with its own close button. Moving the mouse cursor over the thumbnail will let you peek at it while hiding all the other opened windows. How cool is that?
There is a nice Youtube video that shows you how the Aero shake works. Click on the title bar of a window and shake it once; all other windows will minimize. Shake it once again and everything comes up back.
Another usability feature in Windows 7 is the Aero snap. Pick up a window from the title bar and drag it to the top edge. The window will maximize. Taking the window to the left or right edges of the desktop will maximize only its height. Here is another Youtube video for you - Aero in Windows.
If the above videos leave you wanting the same for your present operating system, you're in luck. There are third party applications what will emulate the similar functionality of Aero Peek on Windows Vista and Windows XP. Refer the link for details.
Page contents: Show desktop icon missing and replaced by a similar feature that is present to the right of the system tray.
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