My thoughts exactly. But beyond trust there's also confusion. I'm not much of a Microsoft customer or user but from I've seen it feels like they keep doing this every few years. There used to be MSN which is now somehow rolled into Hotmail and the Live ID thing which also has something to do with Hotmail but I'm not quite sure and so on which is very confusing to me. If I don't get it as someone who is very familiar with a plethora of (not) confusing web services then I fear for the mere mortals out there who receive some sort of notification that Microsoft Service X is now Microsoft Service Y. The other thing I notice is the Applefication of MS branding in some of this. Music, Calendar, Photos? If I were a MS customer I'd be reminded of Apple's offerings and wondering how they compare with names like this. Now that last concern is pure conjecture but I think it could be reasonable to guess that the more their services sound like Apple products the worse it is for them. There has to be another way to simplify the brands. Google does it without sounding like they're trying to be Apple.

Edit: After thinking about what I just said it occurred to me that it's very easy to be a critic and while I still stand behind my statements I think there's a ton of room for me to be very wrong. After all, I don't work at Microsoft and I don't have complete information. They're a multibillion dollar company so they must know something. Meanwhile I'm just some asshole making flip judgements in my pajamas, dreaming of my business being successful one day.