Compare to Google ?
Why not ? Here below the relevant paragraph from Google Terms of Service (http://www.google.se/intl/en/policies/terms/regional.html) :
Your Content in our Services
Some of our Services allow you to submit content. You retain ownership of any intellectual property rights that you hold in that content. In short, what belongs to you stays yours.
When you upload or otherwise submit content to our Services, you give Google (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes we make so that your content works better with our Services), communicate, publish, publicly perform, publicly display and distribute such content. The rights you grant in this license are for the limited purpose of operating, promoting, and improving our Services, and to develop new ones. This license continues even if you stop using our Services (for example, for a business listing you have added to Google Maps). Some Services may offer you ways to access and remove content that has been provided to that Service. Also, in some of our Services, there are terms or settings that narrow the scope of our use of the content submitted in those Services. Make sure you have the necessary rights to grant us this license for any content that you submit to our Services.
You can find more information about how Google uses and stores content in the privacy policy or additional terms for particular Services. If you submit feedback or suggestions about our Services, we may use your feedback or suggestions without obligation to you.
In what way do these stipulations differ materially from those of the Microsoft ToS (which are, of course, copied from the former) described in the article ? Allowing one's content to «be used, modified, adapted, saved, reproduced, distributed, and displayed to the extent necessary to protect you and to provide, protect and improve Microsoft products and services» provides MS with all the latitude it requires «to target [you] with specific advertising» under the guise of «improv[ing] Microsoft products and services». Nothing in the paragraph you cite concerning when «Microsoft may access, disclose, or preserve information associated with your use of the services, including (without limitation) your personal information and content» hinders the company in any way from providing such information to advertisers and therewith «improving your Hotmail experience». Either you are naive, or you have an interest in falsely presenting MS as a less intrusive alternative to Google. It is not....
Henri