There are a few things to consider about Microsoft's reorg that put the thing in perspective.

1) they do this every few years

2) it does not change the patterns that have formed with steve in the lead

3) they have become a HUGE bureacracy with an employee to contractor ratio of 1/3. They cannot build a focused organization because they don't have dedicated mission-driven employees across the enterprise

4) businesses have cycles. IBM went up, then down and up again. So is Microsoft. They happen to be in the down cycle.

5) lack of vision. Steve was never a vision guy. Gates wanted a pc on every desk top and steve made it happen. There is no one in the org that has that kind of a vision

6) Long term is without form. They don't really know what the future will look like. So they don't know how to proceed.

I could go on but you get the point. MS is a big, lumbering, fat, inefficient organization filled with mercernaries that care not for its fate. If they became a lean, aggressive, visionary organization filled with people of a shared stake and vision then they might get somewhere.