One could argue that IBM's PC business is what died, but I'd say Dell did more to kill that than Microsoft (my guess is MS doesn't care whose hardware they run on.) The other companies the author described, Xerox and Bell Labs and Apple, only one is still kicking around in the consumer technology space, and it almost died along the way too.
The "MS is managed into the toilet" comments seem like the other side of the "Apple is destroying openness/hobbies" or "Google kills privacy" memes. I read it as people wishing a particular company was different, more like how the authors want them to be... open, friendly, innovative and awesome. Like a digital Santa Claus. Fact is, all of these companies are successful, with weaknesses and strengths. I'd like a more level-headed comparison of those, personally, rather than nostalgia.
All of these companies are shifting, like IBM did. Google is really going after mobile, MS is really going after businesses (with a side quest into the living room), and Apple is doing it all. It's just interesting to see who's big bets will pay off.