Personally I think this is worrying for MS - it marks the start of their "we've lost touch with the real world" era. This is what happened to IBM when MS themselves were the young upstarts who created windows and look what happened there
Good point. People could argue that now Linux is taking advantage of MS the same way they took advantage of IBM.
Course, MS is more powerful than IBM ever was, and it's only when they start getting in trouble that you'll see just how dangerous MS is to the economy. A company should never get that big, so now many of the ironclad rules of economics don't apply to them.
Near-infinite cash can make up for an awful lot of mistakes.