I disagree with the general sentiment of the article (mostly the hyperbole), but one quote hit the nail on the head: "They're in a different world."

There's no question that Microsoft is still dominant in the areas they care about, and because of that dominance they're likely to stay there. At this point, I think people understand that dominance intuitively and so don't really even try to beat Microsoft, especially since the web-as-a-platform thing is looking so exciting.