It does look like Google thinks this is a PR win. With their comments in the sea...

shadowfox on Feb 2, 2011 | parent | context | favorite | on: Microsoft: 'We do not copy Google's results'

It does look like Google thinks this is a PR win. With their comments in the search engine forum and Matt Cuttis' comments in the original HN thread, it is hard believe that this is a "rogue" faction of some sort.