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Like others have said, Microsoft, shouldn't respond directly to apple, but they should respond to two things their main competition, which is industry hype, and XP. In the business world they haven't been upgrading because there really hasn't been a compelling reason, to risk what the hype is telling them, with 2008server that can change.
As far as the hype is concerned they should just keep it positive, and maybe do a don't believe the hype campaign. I have have done several Vista installs, many professionally and 4 personally and i have had one problem that was fixed in 1 minute. I have been running Vista at home for over a year it is solid and has been just as solid as my corprate XP machine. My wife wanted a Mac until I put Vista on her laptop (with and extra gig of memory). Is Vista bug free no (it would be nice if the 32 bit versions would recognize 3.2 gig of ram), should Microsoft improve it, absolutely, but that goes for any software product. I had more trouble installing XP on my old 95 and 98 machines than I have had with Vista upgrades. If I believed the hype I would have never known.
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