Anyone who studies Microsoft quickly figures out that it’s collective corporate personality is paranoid. Anything that even might be competition someday is either bought up or crushed mercilessly. It didn’t make sense to me at the time, but that’s how it viewed the Internet at first, and why it moved to kill off Netscape.
It seems that it only managed to delay the inevitable, though. There are apparently at least twenty functional WebOSes now, according to Frantic Industries, ten reviewed here and another ten here. The long-rumored (and long-denied) GoogleOS probably will happen, sooner or later.