Their business practices, particularly with respect to extortionary illegal contracts with hardware manufacturers were only finally stopped with a government anti-trust suit against them.
Although it may be enticing to spend a few years with a slick point and click IDE such as VisualStudio and pretend you are programming, as anyone who has ever done so knows at some point you run into something broken and it's tough shit because you can't fix it.
But you can relax, you are correct. They were never able to "own" the net and they don't own the pipes (which I've read is the real reason Buffett never invested in MSFT, he's a very long investor).
Please don't think ill of those who lived through those years. About three years ago now I swore off windoze for good and my health has improved considerably. I truly hope others have that same opportunity.
I might be early, I often am, but if you have the stomach for it I'd say MSFT is a good short, even if you like the stock it can be just as profitable on the way down as it was for those on the way up :)