I get the feeling that MS are actually seriously about user privacy if for no other reason than that they know damn well it's a huge USP and also a massive differential from Google who exist because they mine your data.
So I'm not going to sneer at this. They almost certainly mean it.
However, it's still a half measure. There's only one way to restore confidence in the security and privacy of user data on MS's cloud and that, Satya Nadella, is to do the unthinkable and move Microsoft out of the USA.
I know, that's a serious wtf statement, isn't it?
But while MS can be compelled by US law to tell the US government absolutely everything they have on you and even compelled to collect statistics where they would rather (for sales reasons) not, they are at a competitive disadvantage.
So where can they go? Somewhere small. Small enough to be the country's major revenue earner and thus influence legislation away from intrusive.
Nepal might work.