Is Microsoft really dead?

I don't normally miss out on reading Paul Graham's essays as they are very well written and thoughtful. I infact recommend to folks I know who haven't heard of him. But I think in his latest essay he contradicts himself and went down the path of ranting with his essay Microsoft is dead. If his point was to convey why Microsoft doesn't matter anymore because desktop is dead and web 2.0 is taking off, then why go into lengths about why Apple is so great ignoring the fact that it is also a desktop operating system. I did comment on the essay and let me see if it gets any response or gets deleted. Here is what I exactly commented:

Paul, I have great respect for you. But I think you contradit yourself a bit when you say this "..everyone can see the desktop is over. It now seems inevitable that applications will live on the web—not just email, but everything, right up to Photoshop". That by itself is a accuate and I can agree with. But you go on to rant about how Apple has put MS on the run and how you fund people that use Mac etc etc. Don't you consider Apple a desktop too??