Or maybe I interpreted Ballmer's comments differently than you did. I might be wrong in my interpretation, but it sounds to me like Ballmer is complaining that the iPhone interacts with the internet via proprietary applications on the device rather than web applications.
> Microsoft ... was bad for attempting to use its monopoly to force its competitors out of business.
That's certainly a valid point. It's unfortunate, because what made Microsoft successful in the first place was its relative openness (particularly its cheap OS licencing terms) compared to its competitors. They seem to have forgotten this after becoming the de facto standard for desktop PCs.
However, Microsoft was also bad for being closed and proprietary. Ask people who developed software in VB6, only to have Microsoft abandon them and break backwards compatibility in the .Net framework.
> As for the Internet being open, I'd like to see you download the source code for a 37signals application.
That's true, but it's not what I was claiming. What I meant by "open" was that anyone with any kind of computer that has a reasonably modern browser can access and use a 37signals application. You don't need a special proprietary application or framework running on your own device to do this.
And I need Windows to run Steam, and I need a Mac to run iPhoto. You're suggesting an absurd fantasy wherein everything runs on everything. If I want "open" by your definition of "it's on the Internet" on the iPhone, I go to the Internet.
I disagree with your comment. Microsoft wasn't bad for being closed, it was bad for attempting to use its monopoly to force its competitors out of business. Apple's closed, but they have plenty of competition, so it's all right. As for the Internet being open, I'd like to see you download the source code for a 37signals application. You can't, because it's closed. But you can use APIs to export data? Well, good news! You can export your iPhone's data also, and they give you APIs to do so!
But it doesn't matter that I disagree with your comment, because my actual point is that Ballmer doesn't have a point, is a terrible executive, and should have been fired two years ago for his riotous incompetence as a businessman and a marketer.