I really can't believe that Microsoft is as worried about Java and the NC as you make them sound. I suppose that there is probably a contingent in the MS Managerial ranks that is still smarting from having initially missed the WWW boat, and as such may be a bit overly-sensitive about not wanting to miss this next great trend. Users want good software that is easy to use and helps them get their work done.
Software is written by developers.
Developers like to use what they know and like and works for them. They write real-world applications that do real work for real people. Java has yet to prove itself in this arena. As it matures, Java will no doubt find its place in the market, but until then, all this hubbub seems like a bit of the proverbial 'tempest in a teapot'. Michael Bowers I agree with Jesse.