@Kevin Bailey
"obviously MS do not put product activation on Visual Studio"
Oh but they do. It just isn't quite as harsh. As befits the differing EULA, which allows developers to install multiple instances on different machines just so long as they undertake not to run multiple instances simultaneously.
Or at any rate, that's what the EULA said the last time I could be arsed to check if I was violating it in a professional capacity. And everything I've installed from VS 2003 upwards has phoned home to register at the end of the install process. Even the free versions of the 2k5 and 2k8 tools.
"Their plan has always been to get developers to create Windows apps so's that they can continue to fleece PC buyers."
I'm not sure that's entirely accurate, don't forget that MS also derive a substantial revenue from sales of development tools to the corporate market (although obviously nowhere near as much as from their OS sales) so MS' developer relations are probably also aimed at driving this revenue.
I would also guess that this is the reason why you can get current versions of all the individual tools for free already (making this "giveaway" more of a PR stunt than anything else), but not the full "professional" or "enterprise" versions.
@"ZOMG! Drug Lords!"
While this allusion bears up to a certain extent, largely due to Chairman Bill's public displays of megalomanaical glee*, the only difference between MS and the "free" competition is the pay off.
The hardcore FOSS crowd want you to buy into their ideology, so they give you free stuff, MS want your dollars, so they give you free stuff.
So what's the difference ? We get to choose between extortion or brainwashing, if you choose frame it in such extreme terms. Or you could just not. You could just google "loss leader" and realise that MS' commercial activities vis a vis giving stuff away barely differ from those you might find in a well run corner shop. But knee jerk hysteria is _so_ much more fun, no ?
*c.f Eric Raymond et al who are obviously fine examples of humble well adjusted types, who don't drool or rant or hold their beliefs with maniacal zeal in any way shape or form.