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I would say that Google is in trouble... but don't overlook the fact that M$ is only in it for the money and the surfers are in it for relevant results.
My guess is that any new MS engine will fail miserably due to the fact that they will spam their SERPs full of paid listings to make a quick buck, and dilute the quality of results... I mean hell, thats what they do now.
Seems to me they are just looking for a replacement to the Inktomi backfill they currently use.
But if hell freezes over and MS creates a Google-like engine, Google's ass is in the fryer, hard to compete when the automatic homepage of every new windows machine is your competitor.
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