> Where it lost its way however is Microsoft actually cared about Windows
I agree with you, but I feel like they've stopped caring about most of their software. Windows is just the most egregious, high-impact example.
SharePoint and Teams were the first ones I noticed. I used to run an enterprise SharePoint farm for a big company. Under the covers it was a Rube Goldberg machine. Microsoft has some of the best database-related developer knowledge in the world because of SQL Server, but SharePoint was storing its data in giant XML blobs instead of using proper, efficient table schemas.
That lazy "it works (most of the time), and it's cheaper for us to offload the cost onto our customers' devices" approach was even more pronounced in Teams, and now Office and Windows itself each spawn about a million Edge WebViews for the same reason.
I never thought I'd be nostalgic for the Microsoft of the mid-2000s.
> giant XML blobs instead of using proper, efficient table schemas.
Prior to SharePoint 2013, Microsoft used sparse columns. It made for massive tables and was poor design.
Moving to XML blobs for user-defined schemas was the correct choice. The table schema became significantly smaller and user-defined schemas (for Lists/Libraries) could become much more complex.