It's possible that due to Azure success they decided that consumer sector is a testing ground for their exploitation patterns, where they can test out how much their userbase can withstand before being seriously annoyed. And this is what happen, people said "enough" by looking for alternatives.

They can throw money to tweak some stuff but I doubt they'll fully back off from pushing for software+services or all this recent conditioning for Copilot. This piece is a damage control but wording shows they won't change. I doubt that in last 26 years we had a company that truly admitted its mistakes - that's not in the "nature" of such entities.