I found the answer article rather pathetic, while the original article is rather limited in scope. Still, a bit of perspective.
ClearType first shipped with Windows XP. However, the only setting you had was 'on' or 'off' - you couldn't define it per software nor could you refine it: you had default settings, that worked or not, or you didn't. For comparison, at the same time ClearType came out, Adobe shipped Adobe Reader with subpixel filtering on, and a complete setup for it - on which you could decide which looked smoother or sharper.
This was an add-on for WinXP, and only appeared as 'standard' on Vista. Meanwhile, in the FOSS world, you could (in countries where software patents aren't recognized) set up your font filtering depending on font size (filter on higher than 6pt, or another value, in any screen orientation possible, etc.).
So yes, ClearType was the bastard child of XP: it was there in 2001, but if you didn't have a common LCD screen (and these weren't common at the time), then it didn't work.
The stylus in Office: this one I can't really say. Still, if you look at Office's interface, it is true that a stylus on it would have sucked big time before MSO 2007, and still sucks with the ribbon (very small icons). That would be expected from a small office suite, not a market leader. Indeed, MS tablets are often awkward to pilot, if at all - most of the times, what makes them usable are third party tools and driver tweaks.
At least until 2006.
When Vista became such a huge success (/sarcasm), many people at MS started reconsidering: can we really afford to screw up so perfectly, eventhough we are market leaders? Why is it that our latest softwares have been so decried?
The answer was, 'security' isn't good in a sales pitch (does it mean all former products sucked at that? Well, yes - good one for prestige); 'performance' couldn't be taken seriously (I had a brush in with Vista on a reasonably powerful machine last week: ouch); and 'innovation', well, all those nice things found in Vista had:
- already been present in former Windows versions (ClearType, with an add-on)
- already been available from third parties (browser tabs, transluscent windows)
- already been found in other OSes (composited 3D desktop: Compiz)
- been completely screwed up (fast file copies, UAC)
On IIS, for example, what did it bring to the table that Apache didn't already have? Answer: nothing. At all.
No, the only "nice" things to come from Microsoft recently have been pushes for interoperability and better performance: Seven is NICE (but it should have come as a service pack for Vista, like SP2 for XP), .Net is open (see Mono), the OOXML format was finally reasonably cleaned up, native (if controversial) ODF support in Office, IE finally supporting the Internet like other browsers do (OK, we're still waiting for DOM2 support, but at least HTML, CSS and Javascript work)...
But, where do we see innovation here? In Xbox360? First console to bring 1080p to the living room? That's plain wrong:
- original model could only handle 1080i
- none can read HD media: you need to buy an HD-DVD drive for it, HD-DVD is pretty much extinct, and Blu-ray is still not available. On the other hand, PS3 did bring HD media to the living room, and Wii brought innovative controllers
As for the Zune, sorry: good joke. A portable media player that can't playback DRM content from the maker, that is more expensive and more difficult to use than any of its competitors... I remember reading an article once about a break-in in a hifi store: all MP3 players were stolen. iPods, Creative MP3s, etc. All but the Zune. That does give an idea of the marketability of the thing: it's worth less than dead weight.