Earlier quoted context omitted.
The Cursor founders (technically the company is called Anysphere, Inc) are all young MIT grads. What they needed is a 40-year-old with a degree from Fitchburg State who could say "Woah, don't do that! It's not worth the long-term risk!"
It is worth the long term risk. Either you don't get caught and can move faster, or you get caught and the penalty is usually small and a long way down the line, by which time your company will have either folded or grown enough to pay without difficulty.
That is not the scenario here. Cursor is being hunted by an extremely motivated corporate competitor. Cursor has been leeching the gorilla's blood and the gorilla finally noticed. Microsoft doesn't (necessarily) need the law here. They have it if they need it, but they can kill Cursor without needing to sue them. The disastrous outcome isn't a penalty--it's a critical mass of users switching to Copilot because they can't use their Microsoft extensions in Cursor any more. Cutting off the extensions on the same day that their Cursor clone went live was effectively a declaration of war from Microsoft.