When MS announced support for facebook on the xBox, I thought "hmm why not just give users a browser". Then they announced twitter integration... "Umm how about just stuff a browser on there".
It's farcical. But OTOH, it fits right with MS's plan - they detest the www. It's open. It's free. It's not a walled garden they can monetize.
Last time I heard the web division at MS still makes a huge loss. Which leads me to believe they're not in it to make money. They're in it to mess it up, stifle progress, and keep people buying their installable software. They did an absolutely fantastic job of that for 5 years or so.