I would be unsurprised to find that Bill is right, that Microsoft has added plenty more features which are not to be found in free alternatives so that the gap in what they can do is larger than ever.

True, but irrelevant.

The gap that matters is the gap between what free software offers and users need. Nobody cares about a laundry list of features that they don't use. Sure, every one of the features added might matter a lot to someone, they all may have business reasons. But the people whose business needs are addressed by the new features are not the ones which Microsoft needs to worry about losing.

The is the classic mis-strategization that The Innovator's Dilemma walks through in detail. Try as it might, the customers who Microsoft can hear about new feature requests from are irrelevant to the product battle it is fighting.

Cheers,
Ben