Internal politics are one thing but I've yet to hear a story of anyone attempting to overtake Ballmer as CEO when he has Gates' backing. There were stories about the usually tight-lipped Apple and how Forstall was fired while attempting to gather more power within the software division.
The story that comes across to me is of a CEO that knows he's not doing a good enough job transitioning MS into a new era. His insecurity gets the better of him and he fires anyone who is conceived, by the media, of being a potential threat while losing major talent in the process.