They have been distributing server based Linux through Azure for far longer. Creating a Linux VM is a matter of a few clicks and they have hundreds of ready to go VM images.

https://www.simple-talk.com/iwritefor/articlefiles/1610-VM-p...

http://vmdepot.msopentech.com/List/Index

On the flip side of what you said, now that they're an Android OEM they may have the legal standing to complain to regulatory agencies about how Google forces Android OEMs(which was kept secret from the public until it came out recently in court cases) to have Google Search as the default in order to get access to important Android Apps and APIs including the Play Store to the detriment of alternate search engines like Bing and DDG.

http://bgr.com/2014/05/05/google-search-and-apps-on-android/

They use the same loophole as with phones. Microsoft distributes Linux VMs through its subsidiary Microsoft Open Technologies, which was created just for this purpose. It does not own the patents so MS doesn't have to license them.

Would this hold up in court, or would a judge conclude it was simply a scam to avoid their legal responsibilities?

Unfortunatey they created a subsidiary called Microsoft Mobile that sells the phones. The subsidiary does not own the patents, so no patents gets licensed. Qualcomm uses the same loophole.

well they didn't create it so much as buy Nokia D&S and rename it.

I thought that GPLv2 didn't include a patent license. I thought that was much of the reason for GPLv3 which Linux hasn't adopted.