I would like to know how much it is costing Microsoft to fix that damaged reputation so that other executives will know if they do this it will end up costing at least X amount.
If their 'Embrace' looks like 'Yes we are compatible with...' and their 'Extend' like 'If you use our layer you can also do...' then people stay sceptical.
Instead their 'Embrace' should be 'How can we help you with your open source product?' and their 'Extend': 'Here are patches that fixes problems, improves performance and implement community wanted features.'
It seems companies like this always try to hold the door to 'Extinguish' open.