Microsoft is not a Silicon Valley company and it never was. One source of animosity that this has created is that it has been a powerful competitor to a great number of Silicon Valley startups. More deeply, as a bootstrapped company, it goes against the economic model upon which Silicon Valley's entire capital structure depends...YC cannot produce another Microsoft because YC companies take outside investment at day one. A startup which emulates Microsoft doesn't offer an opportunity to make early stage investors rich.
Google is every bit as much an existential threat to most small software companies now as Microsoft was at the height of its power, but we don't have any resonant stories of Google competitors being taken out unfairly.
A lot of their living room entertainment stuff they've done with Xbox and Windows Media Center has been pretty cool. Not necessarily groundbreaking, but still neat.
Can you make the case that SQL server is worse than similar SQL DBMSs?
F# is a variant of ML and therefore not original, but is it uninteresting?
But the pure technical level isn't all that matters for a programming language. There's not the same library community around .net, because it came five years later and not enough better than java. And there's no migration path, because - which is worse - none of the MS stack interoperates with anything else.
I would, quite genuinely, like to do parts of my current job in F#. But there's no eclipse support for it. Even if I wanted to use visual studio, which I don't, it doesn't run on linux (and that's to say nothing of deployment - our ops team has been burned enough times trying to run windows servers). If I'm going to write things in F# there has to be a way for the rest of my code to use it, but F# doesn't run on the JVM so I can't write a library in it (or call JVM libraries), and when I looked for protocol buffers support all I can see is some third-party google code project.
I wouldn't want MS to give up on .net as it's actually a really good VM, so I guess that part makes sense, but windows is useless on the workstation and the server - and it seems like all the cool MS technology only runs on windows.
However one thing that might make SV loyalists tick is that the largest software company in the world is not in SV.
I like (todays) Bill Gates as a human being. I like (the last current build of ) Steve Jobs purely because of his marketing skills.