They have a system that monitors searches, if you search for two ingredients required to make bombs within a small amount of time, your ip address is flagged for further investigation. I don't see anything wrong with that as long as it is done with common sense.
I read an interview somewhere that the guys that did the search admitted they do about 10 a day and it's always nothing.
I personally hate cameras, I have once ripped a video tape out of a camera and destroyed it when a camera man filmed me without permission in the street. I did give him the option. Give me the video tape, or I'll knock him out and then take the video tape. He took the first option.
Microsoft are self destructing, they won't die over night, it's going to be a long drawn out death. They have a chance to rescue themselves purely because they have so much money, they can survive one failure.
We saw the same thing happen to Apple when Steve left the first time, sales fell, products were crap, then he came back and bammmmmmm off they went again.