Entering the search business means entering the online advertising business. They don't know anything about that business; just look at how iAds is working out.
Steve Jobs himself said directly at one of the All Things D conferences something like (paraphrase), "We don't want to do search. It's not a business we know anything about, other people do it well, there's no reason for us to get into it."
That's focus. It's something that's badly needed at Microsoft.