I took part in an online conversation today in which this article was again
cited by very knowledgable Microsoft staff as an example of spyware with
rootkit characteristics. They also talked about the current state of the
art in such things, which are quite different, as you've observed.
I should have asked questions with regards to the projected capabilities of
Microsoft Antispyware as a product, but I believe that spyware with rootkit
characteristics are clearly within the range of bugs targetted.
The Malicious Software Removal tool also targets certain rootkit variants,
and I would expect it to continue to do so.
I guess one question I have which it'd be nice to resolve is this: There's
likely to be a line drawn at some point between viruses and spyware. Each
vendor is drawing that line slightly differently today, I think, and I'm
unclear how Microsoft is drawing it, since they have no product in the
antivirus field.
That is scheduled to change before the end of the year, and the antivirus
tool won't be free. So the line between what can be detected/removed by the
free capabilities of Microsoft Antispyware, and what needs an antivirus tool
to remove--from whatever vendor--will become a little more significant. I'm
not sure I even know how to frame the question in order to feel like a
response is clear enough for the average person to understand.