Why this will not hurt M$.
It won't, and here's why. The majority of No-IP's customers/users were small businesses at best, mainly individuals, and criminals. Microsoft probably makes very little money from the those small businesses, probably next to none form the individuals (and going by the posts here many seem just happy to shriek at MS whatever they do), and so doesn't really care too much if they get their panties in a bunch. However, they do make an awful lot of money of from bigger businesses, and what those bigger businesses see is MS pro-actively spending money and resources to kill botnets. No amount of freetards whining is going to counter that positive PR.