People misunderstood PG's essay because he misstated his thesis. "Dead", put simply, was the wrong word to use.
Microsoft is not "dead" any more than Apple was dead in the mid to late nineties (and boy, was that a popular statement at the time).
Microsoft still has cash, people, and a position in the industry that, with the right leadership, can be turned around to be competitive with Google, Amazon and Apple.
Please back up all prognostications with evidence, or submit yourself to wrongtomorrow.com :)