Microsoft was always used to win with inferior products. Windows was inferior to the Mac OS for many years and yet it dominated the market. Internet Explorer, the infamous browser, was the best browser for a few seconds in history when it triumphed over Netscape when both were at version 4. We still feel the stagnation it created since than being the most inferior browser ever since.
Lately Microsoft started to create better products and yet instead of winning they fail. Silverlight is better than Flash & Flex and yet it lost to it not being able to gain any significant market share (Flash is better than HTML5 but lost to it as well, but that’s a different story).
What worries me a bit now is that the truly impressive Windows 7 mobile won’t be able to gain any significance market share. Not yet saying that it’s better than the iOS (iPhone) and/or Android, but it is an impressive OS that didn’t just copy the concepts of the other two. It’ll be interesting to see what will come out of it.