In some cases, Microsoft has indeed purchased other companies in order to improve its portfolio, however several of your points are plain wrong.
Internet - Spent years trying to catch up
I'm not sure what you're getting at with this. I assume you're referring to internet browsers. Bill Gates suddenly became very excited about the potential of the internet just before the launch of Windows 95, and so Internet Explorer was included as a last minute thought. Considering the scale of the browser anti-trust lawsuits in the early 2000's due to IE's dominance in the market, I'm not sure how they can have been spending years catching up?
Games - Had to buy DirectX to compete with other API's such as Glide (3Dfx) and PowrerVR.
You miss the point with this. For starters, DirectX wasn't bought in, it was developed by Microsoft themselves. Furthermore, it wasn't to compete with Glide and PowerVR - they were both bespoke API's for their respective cards, and so any games for Windows would require the appropriate code for the specific cards. DirectX provided a single API for all developers to code for, and all video cards with the right hardware specifications and drivers for DirectX would work. It signalled the end of games that only supported one API outside of software rendering, and shifted responsibility for supporting hardware features in games from the coders to the video card manufacturers.
Then had to throw money at XBox to make it successful.
As have Atari, Nintendo, Sega and Sony. Sometimes successfully, sometimes not. Any console release will have an eye watering marketing budget behind it.
Languages - Had to copy Java to create C# (after losing a battle for Visual J++)
Though they were initially very similar languages, they're now quite distinct in their differences. While on the subject of languages, Microsoft have a pretty good track record with their support for both languages and developers. Right back from their early days they've been developing programming languages, and variants of existing ones, and nowadays Visual Studio is probably one of the most used IDE's around.
Smart phones and tablets - Too little, too late
They definitely got smartphones wrong, though in regards to tablets they were one of the first companies to give it a try with the Tablet PC. It wasn't a success, but you certainly can't say they failed to predict the trend. They were actually too early to market.
We all like a bit of Microsoft bashing at times, but you're going to have to try harder than this.