How Microsoft lost its mojo: thoughts from an insider
samgrossberg.com
samgrossberg.com
Some of us are definitely working on #1, check out:
http://blogs.technet.com/b/next/archive/2011/01/20/dirty-wor...
tl;dr; summary - we've started a group in MS where folks can work on side projects that are totally unrelated to their job (or related, not a requirement), and we organize Hackathons to get folks working together and show off their projects to the company at events called "Science Fairs". We're also working with legal to get some of these projects released to the public.
It's definitely a struggle though, turning the battleship is not a quick or easy process.