I agree with the sentiment in the article because of an important point you mentioned:
> Think about where we'd be today if Microsoft actually succeeded in what it set out to do
As DHH points out; and to a similar vein if we swap Google for Microsoft in your quote above, fragmenting the industry is the safest and best way to serve users. Google seems to have succeeded in it's goal to control the worlds information-- and whether you believe this or no; having 3 powerful entities competing with each other is much better than many small ones trying to dethrone a hostile winner.
Small startups will always try and innovate where they can, but there are now different inroads as a single leader can not always banish them.
I agree with you. I agree on the macro-scale. I do not want one company to have the ability to do the things you mentioned. I am sure Microsoft is doing much of this new initiative out of self-interest, but it is good for the community. I like vscode, they have an extremely easy to use && intuitive Azure interface and a massive amount of open courses and docs on how to use it, and tons of other code, docs, resources ect.
I don't want Amazon to be the only cloud provider.
I don't want google to be the only search engine.
I don't want os x/win to be the only 2 operating systems.
I don't want Apple to be the only vertically integrated handset maker.
I don't want a single option for payment/wallet
I don't want a single app store.
All these things are better addressed when there is competition, and the competition between several large players leaves room for smaller companies to enter and innovate.