hattig voted 1 on this story.
Everyone will be better off if Microsoft are broken up. They have finally written an OS that can realistically be called an OS! The problem is, because of the dominance of Office (gained unfairly in the early '90s - they told all the other office developers to write apps for OS/2, and then sneaked out Word and Excel on Windows 3.0 with no competition - damn IBM for charging so much for OS/2 at the time) they basically make it a requirement to have Windows, and the upgrades for Office2000 require IE (why? I see no reason).
At least with 3 Microsofts (OS, Internet, Applications) they will have to respond to the market instead of trying to force the market to their end. If Linux/FreeBSD/MacOS X/etc become significant in the desktop market, then they will have to port Office, or lose out.
Of course, even if M$ are only forced to release their entire APIs and file formats and standards, everyone has gained. Instant Office compatability can be gained by everyone, and much more reliably as well.