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People like Google because they do neat things and they have personality. I certainly think this is where Microsoft lags behind. Apple is like the Metrosexual technology company. Google is the fun geek that makes things that people just get. And Microsoft is like Sears.
I know what you're saying: "What's wrong with Sears?" I mean they sell tools, vacuum cleaner filters, and their own brand of major appliances. Heck, they even sell digital cameras (well try to sell at least...they seem to have only older models and not anyone around who knows more about them than your grandma). Sears suffers from an image problem (in the US at least...I know they're big in Canada). Here in the US, Sears is seen as "the store your grandpa went to get the family portrait taken." Definitely not the image you want to have in today's "my grandpa's store, oh come on!" world.
Well, Microsoft is not quite in such dire straits, but we definitely have an image problem. Why? Because we don't do have a Pig Latin version of our search engine like Ooglegay. Why not? Would it be profitable? No, probably not. So why do it right? Maybe once is a while MS can create a market like we once did with the personal computer.