"Forget browsers. Think instead about the implications of Microsoft's announced plans, dubbed Hailstorm, to integrate into Windows its own network services for handling privacy, security, copyright, identity authentication, real-time communications, payments, scheduling, software delivery, and file storage. It's not hard to imagine the dystopic possibilities when a private monopoly exercises unfettered rights to define the architecture of such important zones of our common, global space."
That quote is from Breaking Windows: How Bill Gate Fumbled the Future of Microsoft, by David Bank. I think it sums things up nicely, and this whole Palladium thing is in the same basket as far as I'm concerned.
"In Christensen's schema, a disruptive technology starts as an untested product with an unknown business model or one that offers lower profit margins. Most significant, few customers even seem to want the new thing. Any rational manager would stick to the old approach and brush aside the threat from a product at best suited for marginal, niche markets. At the same time, constant improvements in the traditional technology make it all the more valuable and seemingly invincible -- giving rise to breathless accounts of a company at the peak of its power. By the time the disruptive technology makes the jump to mainstream and undercuts the incumbent with a "good enough" product at a markedly lower price, it's usually too late for the incumbent to recover."
Another quote from Breaking Windows: How Bill Gate Fumbled the Future of Microsoft. As I read this, I couldn't help think about Open Source projects like Linux and Mozilla. They seem to me to be better and better, and soon to make the jump to mainstream.
In case you couldn't tell, I just finished Bank's book. I enjoyed it. I've read a few books about Microsoft, some about the court proceedings, and some about them and Netscape. This one looks at Microsoft's internals throughout their trials and tribulations, and for someone who enjoys organizational behavior, the book had a lot of good insights and commentary. If you enjoy non-fiction about technological corporate America, check it out.