Oh give me a break! Yes Microsoft stole everything! Want to know what Microsoft did as innovation? They made it possible to print from any app. Sounds trivial, but Microsoft perfected the driver model. Until Windows 3 the concept of the driver model was there, but it was broken or haphazard. I was there when I needed printer drivers for Wordperfect, Lotus 123, etc. These days we assume things just work, and it was Microsoft that perfected this.
Did Microsoft innovate other areas? Yeah, but guess what Apple innovated as well, but they also stole ideas or "borrowed". The designs from Apple came from Bauhaus design school. Look at Philips, or Braun in the early days. Very similar to what Apple has now. Apple improved and refined and made things work better. The software industry works because we borrow, beg, steal and innovate along the way. In other industries there are very definite lines, but not so in the software industry. And this is why software patents suck because they hit everybody.
Now the fact that you say the industry is killing itself? Right... I was there in the 80's typing away on consoles and 64 baud internet connections using Archie, and gopher. Heck finger actually worked in those days. What we have now is WAY WAY better and I for one don't want to go back to the "glory and good ol days" because they were not better, they were worse.
Want to know how things sucked? Watch Magnum PI sometimes and look at the tech. Magnum PI is a great show and quite timeless, but the tech, computers, etc shown just makes me giggle as to how we "used to do things".
What is happening is that the industry is mature and software is mature. Makes it harder to break into new ideas.