Practically this is the anti-trust stigmata that has plagued Microsoft since the beginning of it's days... I would expect that there are a few variables responsible for this reaction.
1) Microsoft has so much marketshare for OS sales and similar lines of computer products
2) Microsoft is clearly working on taking the search marketplace
3) Microsoft has leverage through its motive and domineering marketshare products
Simultaneously, considering the priciple of business operations and leverage, I would, in Microsoft's shoes also slip in "default" settings to MSN. Since Microsoft is leving users a choice by making the option available to select other search engines as default, they are in fact opening the OS and bypassing anti-trust related issues.
Its obviously to Google's gain to have the select your default search engine durring the OS setup, however, wouldn't that be too easy? After all this is business, not an arbitrary group looking out for all parties...
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