I think one reason people are less afraid of Microsoft is they're doing things that are less scary. I agree with one commenter that customers might fear them more than entreprenuers do. They're gradually making their client technologies more cross-platform, not Windows specific. Customer requests were probably a big part of that, but it may reflect a change of consciousness on the part of Microsoft's workforce, too.
I think Microsoft will remain relevant, just less scary.
I think Google's gotten a little scary with the deal they made to censor search results in China. They found an exception to their "don't be evil" motto.