I'm with Namuna.
As for non-competition... All of the companies that develop these products SET OUT TO BE ACQUIRED BY MS!!
It's pretty simple. Microsoft has 30,000 companies PER YEAR submitting to them, asking to be a partner, acquired, whatever. Out of these 30,000 companies, a few thousand are invited to a conference. Out of these few thousand, some are acquired, some partner, etc..
So you see, these companies that "can't survive, because MS is a monopoly" set out to be acquired in the first place. If I were going to develop a product, I would most certainly target it towards MS, as that would be my best bet in being successful. With MS on your side, you can accomplish a lot.
With that said, lets take professional sports into consideration. If you have a player who is so superior to the rest of the league, do you hinder that person? Take Tiger Woods for example (he's in my town right now at the U.S. Open). He can make anyone truly look like an amateur. Do you hear anyone else crying about how good he is? Should be make his club shorter, say he can only play with 9 irons, etc.? HELL NO!
The same applies to MS. Just because they can beat you, doesn't mean you deserve an advantage. Build a better product, don't sell out when they offer you 100 million dollars for it (which is often what they do, and most people sell out -- I would too), and watch your product grow.