If this P&D budget was splitted on long-term-10-years-go-to-market products and really useful and fast increments on current Microsoft products, maybe Microsoft could be the current Google. Or Apple ;)
It's weird a company have the funniest R&D labs and its main product - Windows - still sucks with 80' Windows Registry structure or a file system which fragments a lot.
some of the problems are not bug that will definitely be ironed out as the time passes. some of the problems are on a fundamental architecture level. The whole scaling model needs to be axed and rebuilt from scratch. right now its totally brain dead.
i don't see canonical and google working too closely together on this, as google has a competing OS that they're trying to push: chrome. and now with the introduction of chrome for android, there's no reason why your cell phone couldn't turn into a chromebox when it gets plugged into a similar dock.