It is all fun and games, and a bit childish. Obviously google are not offended, just trying to get some PR about it - just business.

But the argument "I rather Google spend.." can be applied to anything - it isn't as if they haven't be tackling other problems, and they are clearly worried about bing (at least in PR, bing spends big - lots of MS employees posting on forums, including here, which I am sure is encouraged). Bing is losing a lot of money for Microsoft, so by that token, I could say that they should stop it, and spend money on xbox (which is fantastic - no idea if it is losing money, but what a leader) - make it stupidly cheap, make it dominate the home etc ...