You could make the same argument about almost everything Google's done except for search/advertising/youtube.
Successfully bought and developed
Analytics, Blogger, Google Earth, Picasa etc
Can you imagine anyone writing about how Google should just admit they suck at web because they (also) only have a few actually-significant properties on the web?
There's 3 MS and 5 Google properties on this page of the top 20 web properties according to Alexa - http://www.alexa.com/topsites
Neither sucks at web as a whole. But MS sucks at trying to dislodge Google from search and Google sucks at being anything but search (and YouTube, which was already massively successful when they bought it).