To me, what matters most is privacy and freedom. -> Open-source transparency of code, data, and all that happens with it. (Including the ability to fully control and see what's happening in your system at the network level, like OpenSnitch -
https://github.com/gustavo-iniguez-goya/opensnitch).
I don't see any of MSFT's actions threatening this on a really big picture level. It's always been and always will be up to 'the community' to build and make Linux and free software what it is.
Linux, especially Linux Desktop, is wonderfully flourishing right now, and I don't think it's because 'MS hasn't offered a more compelling alternative to Linux' in the cloud. More largely, it's because we've built what we've wanted. Maybe I'm naive about what we've been ungratefully depending on. If so, I'd settle for a mildly cautious and watchful neutral ground. All I can say is, please contribute to Linux and FOSS if you can. I do.