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Think about it, Microsoft rarely gets involved in anything that it doesn't intend to dominate. Their own crawler, a new database, the next generation Windows due out soon... A PPC is probably coming along with Longhorn.
Pesonally, I'd love to see a 3rd ppc. Especially with Microsoft behind it. You never know what clever way they'll integrate it into every computer on earth.
This would probably indicate that running their own ads along with Over's for a year or so while they built up their customer base would be a good idea. No loss of income!
It will be interesting to see what the minimum bids would be - 5¢ like Google which has been really succesful at bringing in small advertisers or 10¢ like Over (or more in Europe) and eliminate the small guys.
Many of my key words in Over that used to have 4 or 5 adveritsers are now down to 1 or 2. Luckily we are still grandfathered on many terms at 5 or 6¢ or we would have deleted them.