Microsoft still don't get it

quote this week from their CEO:

Ballmer explained that Microsoft already is rearchitecting its core platform to be more of a Web-centric one. As he told the Partner Conference audience, “the programming model stays .Net and Windows.” But beyond that, Microsoft is is redoing its products and business models from scratch.

How do they expect to be Web-centric, if they're using tools for programming client-server? What's wrong with HTML, javascript, RSS, and dynamic server-side languages like PHP? Google must be laughing all the way to the bank.