The Internet is not the web. Native games with Internet multiplayer aren't the web, they are the Internet.
I don't know a single person using the online Office versions, because, well, they don't compare to the desktop ones.
Yesterday, I saw a graph showing Hotmail losing about 10% market share, mostly to Gmail.
Their new Xbox website broke every existing link on the domain.
Mocrosoft does not get the web, even if they might get the internet.