I'm still not convinced about the name, but it is interesting to consider (more below). Awesome screenshot by the way.
I read the Wikipedia page on the Lindows case, it seems the judge invalidated the trademark to Windows. And MS is certainly allowed to purchase trademarks they feel they need to ($20 million in this case).
As for the name. Microsoft is a company name trademark, and Windows is a Microsoft trademark on a software application. The two trademarks are inherently different with respects to usage and trademark applicability. I would have problems starting a software company called Microsoft, iMicrosoft (the Apple tradition),maybe even Microsoftware (not sure on that, I wouldn't chance it...), But I could create a company with Windows in the name, in fact there are thousands of such companies in the housing industry.
MS refers to Windows as Windows across its website, I can't find an instance of Microsoft and Windows combined. Google searches return "Microsoft Windows", but that is clarifying the company name (in case one is searching for house windows). My operating system is "Windows 7 Home Premium" with a Microsoft copyright notice below the name.
Here's what I see: The company name is Microsoft. The product name is Windows, and the trademark itself has basically been invalidated (I'm trying to think of ways to take advantage of this, looking for some settlement money, maybe a porn site called Sindows or something - Sin Windows, there is a Minecraft server called Sindows...).
I liked your historical screenshot a lot, here's another one (I don't know your age though, the next question may not apply). Did you use 123, Lotus 123, or just Lotus? I used the 2nd and 3rd commonly while in college, but never the first. But the software was simply called 123:
http://www.guidebookgallery.or...
Fun conversation, later.
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