Microsoft is still and will likely continue to be the world's most profitable software company. OS X will not reach 20% global marketshare by the end of the decade and Goldman Sachs IBankers will still be punching away on MS Excel for the foreseeable future. What does it mean to be dead then? What I think Paul Graham is saying, and this is underscored by the notion of "being dangerous," is that Microsoft is no longer…
Microsoft was never the place new ideas and true innovation came from. But they did once have the power to shut down people who had them. They no longer do; that's what's changed.
From GUI perspective MS did a lot of things that X and MacOS "adopted" or tried to adopt silently, so to say.
After all, MS does hire talented staff. Just don't underestimate them.