I thought about Intel/AMDs response to this as the concept is a direct attack on the profit percentage of a computer. MS is unsurprisingly trying to take more.
Random company has X dollars to spend on a new server. Y is allocated to the hardware and Z is allocated to licensing. Whereas previously they could get an 8 core dual socket machine. This would give Intel/AMD a sale of 2 of their better margin CPU's. Now, the company has to re-allocate funds to MS licensing and therefore needs to buy a smaller, lower margin CPU to keep within budget.
This directly affects Intel/AMD's profitability.
The solution I propose is that Intel/AMD license their CPU's to Azure on an 'instructions per second over time' model. Basically if the CPU maxes out for anything more than a burst, extra fee's a due. Fr the regular user who's CPU isn't pegged at 100% day in and day out, then it wouldn't make a difference. But if you run a large web services company...
Something tells me MS wouldn't like that very much.