It seems fine. The manager interface is actually pretty good IMHO, but Linode is really cheap and running Linux on Azure is (I think) still a "beta" feature. I get the hours free though BizSpark. I was thinking of setting it up as a slave/mirror of our main sites for use as a fallover backup. It's been pretty reliable but I haven't done any benchmarks or really tested it in any way.
If I had need or inclination to use the Microsoft stack, though, it would definitely be a serious contender.
On the VM side, they're still catching up, I think. For instance, you can't get multiple IPs routing to a single VM, so if you have multiple SSL sites, you'll need multiple servers in general. (SNI isn't available on IE for XP which is a deal breaker for many people.)
But that's probably a reflection more of the mindset of people wanting dedicated servers and thinking "cloud VM" is the same thing, instead of people trying to build distributed applications.
It really is a fantastic platform.
The only thing negative I could say is that I have a hard time logging into the portal sometimes, due to some weird interaction between my primary MS account and one of my clients' Office365 organizational accounts. So, I sometimes have to switch to an incognito window to log in and use the portal. It's a nuisance, but trivial.
Otherwise, I couldn't be happier.