A Microsoft employee recognizes how difficult it is to keep computers malware free and mulls a way to automatically reinstall windows to get rid of it. Really this isn't much different from what happens on Linux or other OS's. If you've ever had a rootkit installed on your webserver, you know the only way to be sure it's gone is to start over from scratch.

I'm not sure if a lawsuit is the right way to go about it, but I'm happy to see about anything happen that will prevent malware from propagating.