Microsoft got caught trying to pull a fast one on John Q. Public. That's a lot different than pulling a fast one on Netscape or Sun. John Q. Public don't quit screaming, they vote, and they buy software. So I predict Microsoft will change the license and then say something like "it was a mistake of one of our overexuberant lawyers".
Don't believe it for a second. The fact that it even occurred to anyone to insert that language says volumes about Microsoft and its ethics. I would never write a contract to commandeer someone's private data. I don't think any ethical person or company would.
A buddy once told me of an old carney trick. Crooked vendors at the carnival would short change every customer, making a fortune. Once in a while a customer would catch them in the act, and when that happened, the carney vendor would apologize profusely and quickly give the customer whatever the customer said he was owed. That way the crook never got in trouble, but over the long haul, he made a fortune.
Email Steve Litt (but not from hotmail)