+1 faze. Well said. The only things that's probably keeping MSFT alive is Xbox and Office and probably Win 7. I think for the last 2 quarters it's been Xbox and Win 7 keeping MSFT profits/revenue,etc
As for Win Mo 7, I haven't tried programming for it yet, but imo, if the API is easier than the Android API there is a good chance Win Mo 7 could compete with Apple/Android assuming Microsoft does it right. Right now, the biggest gripe I have with Android is it's use of non-standard Java ME/SE. I know why they did it, but still.
The Kin was a complete and utter failure, more so than Vista. Imo, Vista wasn't really Microsoft's fault, the problem was HP, Canon,et al didn't provide good drivers until months after release. Not to mention that many people (and businesses) were trying to run Vista on cr@ppy hardware.
I don't think Microsoft's brand will go away any time soon. Look at IBM. They are not really relevant in the consumer market any more but businesses dig IBM. Microsoft could always be a game company like Nintendo if it comes to worse.
In conclusion, Microsoft is doing quite a few things write and a lot more things wrong. They need to take some new risks and test new waters.