I have to agree with the Chronicle's basic point which is that Microsoft has talked about "cloud computing" for a long time and not delivered anything. Even a bad anything. Its a very good example of the Innovator's Dilemma [1] in action, you've got some smart folks who see a future problem, and start creating interesting technology and vision around that problem, and then the reality that the company doesn't "need"…
Huh? They've delivered lots of stuff. Some bad stuff, some good stuff. The real problem is the lack of cohesion.
(FWIW I'm a big fan of Windows Live Mesh, but I've known more than a handful of non-techies who were just confused by it when I suggested it due to the related-but-different products that pop up when they are trying to learn more about it).
This does seem to be a problem they are aware of given the unification work they've done with the products I used as an example, but they still have a very long way to go on this.