It opens up Google for a lawsuit from Microsoft -
(1) Microsoft and Google create competing projects in parallel
(2) Microsoft discloses project to MVP under NDA
(3) Project is released, Microsoft sues Google for reverse engineering, and can prove that MVP had access to the beta project.
(4) Lawsuit takes years and is eventually settled just to put it out of its misery.
Looks like this Google vs. Microsoft thing might get rougher. Maybe we are going to see something bigger than the Chrome vs. Internet Explorer head on attack.
Google wanting an employee to turn down an awarded designation from Microsoft might be the tip of the Google expansion iceberg. How much market share will Google be able to take away from Microsoft, and what Microsoft Markets will they go after next? Can Google become Microsoft II or Microsoft Jr.? From a development standpoint, new products present new opportunities. This could get interesting.