Just read the HonneyMonkey artical on the Register which TomsHardware points to,
Some points to note,
1, Only 7000 sites a day
2, MS chose the sites
Correct me if I am wrong but don't Phishers send people to their "private site" made to look like a public site...
So I am not sure the MS approach is going to get one large bunch of the criminals...
Pardon me if I sound cinical but if you take Lance Spitzner of the HoneyPot projects coment (quoted in the artical)seriously,
"As the bad guys are constantly adapting their tools and tactics, so too must we"
You realise that the odds are in favour of the phishers with the MS approach as described.
So even if MS find something what do they do, There bod Wang says "legal action" well that's going to go nowhere quickly, so the site will stay up for a very long period of time, or the Phishers adapt and move on.
When that becomes clear I guess Wang and Co will then start talking about ways to get a faster response suchas "black lists" oh what an oportunity for DoS attackes etc ;)
Personaly I think this is another MS attempt to ward of bad press and "being seen to be doing something" to effectivly sweep the real issues under the carpet.
Remember if you don't agree say so ;)