I learned that Microsoft will be releasing an online app that registers domains and provides hosted IM via TechCrunch. I would imagine this is all done through MSN Messenger, ie: only for personal use. This would be kind of scary, but it will cause other registrars to up their offerings. When they do they'll only have three options: pay Microsoft, join another closed garden, or look to XMPP/Jabber.

Microsoft will be doing good with this.