Your first paragraph is strong and accurate. But then you partly contradict yourself with the beating and the killing notions. MS makes $5-10 on huge android phone sales from patent licensing alone. They could try to kill this Goose, but they are more likely to feed it. You have it: MS is overwhelmingly, though not exclusively, a software and services company, and to MS, a sale is a sale -even if not all sales are equal, of course.
BTW, in phones, Apple has already lost its "gargantuan lead" to Android.
You're also right-on with your sum vs. either/or response. As a shareholder of any of these companies, I want as many revenue streams as possible.