"Still, I wonder how Microsoft stays in business, when Linux is better. How is this possible?"
1) Big market share where they press vendors to comply to their standards, else they dont get to sell MS at all and thus also lose income. I know that vendors may not sell Linux in addition if they dont wanna lose the cheaper MS version/certificate. I personally think that MS should alone for this pay huge fines whenever they do so. After all this way they undermine competition and make a monopoly market.
2) Lazy people unwilling to try new OS, even though those OS can be a LOT more superior (have you tried rubyX? GoboLinux? ArchLinux? )
3) Multibillion dollar business where market shares and revenues dictate hard practices which is enforced with patents to batter at some "annoying" open source development.
4) Also dont forget that Microsoft products arent too bad - most of the time you can do ok stuff, especially if you use it in conjunction with open source software. I have a Win XP machine and just use it to convert Videos via Virtual Dub, and Avisynth scripts. I am quite happy with the results - but then again i believe thats almost more a problem with how to configure an OS or use other programs. On Linux i have not yet had a similar hassle-free installation.
Last but not least many many many people use MS just for online games like those stupid (i am sorry to say, they are stupid -the graphic rules and the rest is good but they are stupid :> ) shooters and others (doom3 has nice graphic, but come on - its stupid). Really, they dont do much beside on their machine except just playing games.
I dont think those gaming people will happily change to Linux - they are UNWILLING to change their working gaming enviroment.
If there would be a great Linux Game-distribution with an easy-to-configure wine etc... preconfigured, what do i know.... then i believe more people will switch quickly.
After all Linux is a LOT - and i mean - a LOT cheaper than MS.
Not to talk about efficiency or stability.
The price really slaps in on MS. See that they made a low-weight Win XP for Asia - however in Asia some chinese Linux Distributions gain popularity, plus many Win copies are "inofficial" anyway.
The more knowledgeable people are there, the better for all of us and our development for better products - not by hooking to monopolies.
My 1 cc