How Microsoft can 'kill' Google | The Register
Enough had been said in Slash Dot on why this won't work. I strongly feel that Microsoft is beginning to lose.
In spite of the power and ability to crush competition, Microsoft hasn't been able to defeat Quicken in accounting Software domain. Way back in 2000, a Microsoft Money team member admitted that they would never beat Quicken.
What each team in Microsoft has is paronia. That has kept them beating rivals like Netscape. With just a sense of paranoia and no innovation, it is hard to stay ahead. And innovation with out paranoia doesn't help either as we saw with Netscape.