Between 98 and windows xp Microsoft was probably at the height of their power. They were on everyone's PC, everyone's laptop. There wasn't a viable alternative because they had all the Apps! Fast forward to Vista and you see that Microsoft squandered their position. They lost touch with their market, fed them hype and shit and delivered a product that didn't work... then we had a failed phone, a failed zune and whatever else that never saw the light of day... Windows 7 is an improvement over Vista but really that's not a comparison that even Microsoft wants to make. With windows 8 and the tablet market heating up there really is potential for Microsoft to "innovate" and develop an O/S that runs the same application on a Arm tablet all the way up to an i7 desktop.
So do they deserve the bashing they get? Damn right they do. Do evil was there motto there for a while, as well as charge more for less. Buy out a product just to destroy it, charge outrageous prices for licensing and just generally piss everyone off. On the other hand look at google maps. what a brilliant tool that we all rely on that got released for free... Google mail offering 1gb instead of 1mb at Hotmail. Facebook hasn't done anything of note yet, but Apple (which I do bash constantly) releases a new and evolutionary tool every year that is compatible with old. Playstation should be taking notes and following in their footsteps. So yeah, Microsoft is the herpes of the world.