Wow.
I can't believe I'm saying this, but THIS is the dumbest goddamn article I've ever read by a Microsoft hater. Probably.
For starters (pun?) Microsoft offers a Vista Starter Edition already. Have you heard of it? Probably not, as it's main application is foreign countries that desperately need cheap laptops. Yes, some people need cheap laptops. I know you may not, but some people do, and Microsoft is willing to provide.
So will 7 Starter Edition be something we see on netbooks everywhere in a year? Who knows. If the vendors like it, and the customers like it, then yes. In which case, what's the problem? Microsoft isn't exempt from the tastes of the free market. And why would Microsoft want to sell anybody cheap software? The only reason they're doing it with XP right now is to stay in the netbook market.
Also, for somebody who hates MS you sure have an unusually cynical attitude towards competition.