DevDiv is on a pretty good roll right now. It is still many steps behind other communities in a lot of regards (and likely always will be), but LINQ was a huge milestone in 3.5 and the new dynamic integration options of 4.0 is a big step forward for a mainstream static language.
The XBox division continues to do cool things. Last year's dashboard revamp was a huge face lift for the system, XBox Live may continue to be a wretched hive of scum and villainy but it is a well-implemented one. I'm skeptical of Kinect's value for the type of games I play, but I believe it'll be very popular amongst casuals and should be a compelling addition to the XBox's UI for non-gaming apps. Oh, and the "instant-on" 1080p streaming of pay-per-view and Netflix movies is really sick and feels like living in the future.
The Zune may always be an niche choice, but its the best option if you'd prefer to spend $15/mo for "unlimited" music rather than purchasing music at $10/album. Which situation makes the most sense will vary from person to person. Last year Zune started handing out 10 song credits per month to each subscriber as well, which helped take the sting out of the normal arguments against subscription services.
I don't particularly follow the Windows Phone 7 / Kin stuff, but it seems obvious they screwed up royally on at least half that proposition (and I don't expect big things out of the Win Phone 7 half either).
Windows 7 has been very well perceived, though it still lags behind Linux/OSX.
Office 2007 was a pretty good redesign of the suite, but Office 2010 doesn't seem to have raised the bar much. I don't think OpenOffice will ever replace MS Office, rather Office will continue to lead until GoogleDocs is fully ready to take over (its getting closer & closer every day and I don't think MS's new web-based Office will be able to compete).
In retrospect, after reviewing what I've written so far, my opinion seems to be that Microsoft's offerrings haven't been that bad execution-wise lately, but that most are plagued by the fact that they are "also rans": decent products that have some strong merits, but offer no compelling reason to leave the market leader or community favorite.