I think that's a bit hyperbolic. The Outlook team's choice to not do word wrapping in the plain-text version of an email is unfortunate, but defensible IMO, considering that most people use an email client that can display HTML email. And before the defenders of plain-text-only email chime in, HTML email has features that most people actually want. The world has moved on from the time when emails were displayed in fixed-width terminals. So Microsoft has as well.
Disclosure: I work at Microsoft (on the Windows accessibility team). At work, I use Outlook. Outside of work, I use Mozilla Thunderbird, but even there I send HTML emails sometimes.