FACT: Microsoft is in the company I would like to see die the most.
Overall I wouldnt say that the company is dead yet, but I agree that they are dying. I do agree that the concepts on which they were built have died - this is probably what the author of this article really means. The body is dead but rigor mortis has not yet set in.
Im not sure I would agree with this Web 2.0 business. To me the web is a very vacuous place - all sizzle and no steak. Its mainly a playground for the porn industry and identity thieves, and Microsoft wannabees desperately trying to convince people something great is about to happen there. So far nothing great has.
In many ways the web is like present day hollywood with its boom-vrash flash-bang movies. Full of sound and fury, but signifying nothing. All sight and sound but no plot and nothing for the intellect.
The web is a wild west arizona desert - full of snake oil salesmen - its just the bandwidth is higher.