I have dealt professionally with Microsoft since 1989. Without being paranoid, you can say that they are clever. Diabolically clever in my opinion. But not omniscient, q.v. the browser. It is (unfortunately) good marketing on their part to come up with a new paradigm that sunddenly is a "I gotta have" that sells more Microsoft product. With Palladium, they are clever enough to have architected an alliance with influential companies like Intel and AMD, who'll sell more chips, Dell et. al. who'll sell more PCs. You see how it goes. Mix this in with the Hollywood political lobby with STRONG ties to the Democratic party. Hollywood wants copyright protection. They'll use every political influence to get it. Their proposed schemes would obsolete every electronic accessory TVs, cameras, DVDs, VCRs, etc., every PC and every wireless device as well as raising the cost of their replacements.

Be afraid. Be very afraid.

Microsoft learned its political lesson and now has political allies.