Such clauses have limited application. How limited, I'm not sure.
\r\n\r\nThere's much discussion in the Calera/[link|http://sco.iwethey.org/|SCO] bruhaha about indemnification and the extent to which it can or cannot shelter. I'm learning what I can on this myself, so no intelligent comment ATM.
\r\n\r\nThere's also the talk/walk dichotomy: if it can be shown that MSFT were actively promoting use of their systems in application spaces they were excluding in indemnity clauses....
\r\n\r\nDespite all of this, the public and political damage will be extreme.