Well there is a reason Apple is great at Apple stuff and Microsoft is great at Microsoft stuff. I wouldn't have it any other way.
The true problem is that the media/forums pick up on MS news and run the controversy without actually thinking. It gets page views and upvotes, why stop? MS bashing is the tabloid news of the tech world. Doesn't make a lot of sense most of the time, but damn is it a hot seller.
You're correct that brand proliferation is a Microsoft problem (actually Cisco is a bigger offender here - but they don't sell directly to consumers all that much).
But it's not like they have to be like this. Make the business brands profligate and ensure the consumer brands are simple and to the point, and cut out weak brands (mac.com? me.com? all getting thrown away).
I don't know if you meant to reply to someone else or if you misread what I was saying, but I don't see Microsoft's brands as a particularly troubling subject. I'm glad they're consolidating their Windows Live stuff to a nicer name and format, but I'd say on everything else they market just one option to the consumer and multiples to the business.
It's harder for Microsoft to throw away some brands because they have massive amounts of users who only know the name. Apple hasn't had millions of users on me.com over a decade and a half. Harder to throw out hotmail.com.
The true problem is that the media/forums pick up on MS news and run the controversy without actually thinking. It gets page views and upvotes, why stop? MS bashing is the tabloid news of the tech world. Doesn't make a lot of sense most of the time, but damn is it a hot seller.