Isn't the better tooling at least part of what fuels the growth of Azure, Office, and Windows by making it more useful to consumers?
Microsoft can no longer rely on Windows alone to pull developers and products to Windows so instead they're trying to attract developers to build for any & every platform on Microsoft's stack and support Windows as a by product and maybe choose Azure as well.
So in a sense they've switched to a carrot model rather than a stick model.