In a recent blog post, I explain why Web Applications are far superior to Desktop Applications. Desktop apps are by and large OS dependent and the economics of running a desktop business are not as good as a web app business.

My post here : http://www.vinnylingham.com/2007/02/top-20-reasons-why-web-apps-are-superior-to-desktop-apps.html

I totally agree with Paul in almost everything, however I don't believe buying up all the web 2.0 companies would work. Microsoft has to actually concede that web apps are the future - they still don't believe that it is!