As long as we're comparing who did what first (as if that's relevant today), ReadDirectoryChangesW came in Windows 2000. inotify came in 2005.
> MS to this day hasn't standardized it's own security structure (EX: runas.exe in XP will have the processes pass on administrator rights to all child processes 7 doesn't neither does Vista)
Given that Vista overall has a rather different security structure from XP, I don't see how this is relevant.
> And lets face it on the top of it's game Windows default security could have been over-riden by pressing cancel on the logon screen
Amusingly, this just displays your own naivete. The only way to get security if someone has physical access is through cryptography. Pressing cancel on a local login screen is equivalent to booting into single user mode or just using a boot disk and wiping out the local administrator's password.
> You seem to equate success and innovation with sales and press releases.
Microsoft Research is the most prolific non-university academic CS research lab in the world. The people that work there are all truly brilliant. (disclosure: I did an internship there this summer)