A Chinese blogger wasn’t a very good spokesperson for their government, so Microsoft removed the blog from the MSN Spaces service. If the possibility of censorship doesn’t cause MSN Spaces users to go running for the doors, I don’t know what will (but maybe trashing everyone’s email will help?).
The Redmond crowd desperately wants a foothold in the online world, and screwing up prime services is not the way to do it. If you are going to upset the balance of power, you have to execute with laser precision, something MS has had the luxury of not having to do up until now. And while they are flubbing around, the forces are hitting them from the flanks. Don’t be surprised if people start carrying their blog and email software around on a USB stick, much like they can now do with a free office productivity suite.
And now there is talk of regulating companies that promote censorship. A tax surcharge for that “regulation” might help too.