Ya, I clicked around live.com myself a few days ago. Seems a bit buggy...even for a beta. There's no doubt that M$ is trying to become the anti-Google. I wouldn't be surprise to see them rename themselves Mooglesoft or something.
With any luck Google vs. Microsoft will result in both sides producing better services/products. It happened when FireFox took a chunk out of M$'s hide. We're finally getting tabbed browsing and security in IE! Hooray! Maybe lightning will strike twice and M$ will produce another good product in response to a little competition?