My internet antenna flew down during typhoon so my internet sucks crap.
I am patching thru my htc desire. Basically unlimited internet prepaid for $6.50 for 7 days.
Plus u can make it into a hot spot.
To answer your question perks, why can not M$ get into "cool things".
Just finished a really good book called "Positioning".
It answers the question bang on.
Basically best example is something like "Western Union".
They saw themselves as a "Telegraph company" instead of a communications company.
So when things like phones come along, instead of maybe looking into that area, they view it as competition and try and fight it.
In the short term this makes perfect sense, if you view perspective from manager inside the company.
If WU would open a "phone division", then the manager in charge of telegraph division his bottom line would drop.
So it would be in his best interest to shit can "phone division", they are just a passing fad etc.
By the time phones take over, that manager is long gone collecting his pension.

"Price" is never an issue. Just an excuse. Simple word "Mass production".
Aluminum used to be more expensive then gold to produce.
Some bright guy was still figuring out how to make it into airplanes,cars and all sorts of cool shit.