We should have your friends from the Mac Office team talk to mine - they might disagree a bit :)

Yes, Ballmer was so anti-Apple that it was detrimental to the business. But since when did Microsoft have 100% of the smartphone market? The height of Windows Mobile in 2007 had 42% which is nothing compared to the 90-95% share Windows had for PCs. Microsoft didn't consider Mobile an important space and only when it started to threaten the traditional PC business did they pay attention.

I'm not sure exactly what happened after the Office 2011 release, what (if any) new version of the next Mac Office began, etc. What I do know is that the same team eventually started working on Office for iPad and while the response there says that work didn't delay Mac Office, there had to be more time being spent on iPads than on Macs during development. Now, why did an iPad version take so long? That may have been intentional in order to try and let Windows 8/RT gain some share... but again, Microsoft basically admitted defeat. They took a huge hit on RT, it never got substantial market share, nobody really sells those devices anymore, and true mobile versions of Office have started showing up on competitor's platforms before Microsoft's own. Case in point: the iPhone has a way better version of Office since it was first released last year.

Sure, there's some part of the business that tries to keep Windows out in front. But it's not necessarily the lifeblood of the company anymore. They changed the name of Windows Azure to Microsoft Azure which IMO signifies the change in direction of the company.

They may not be releasing a new Office for Mac to make Mac users happy. But they're not pigeonholing themselves to just making Windows users happy, either. They want to make Microsoft customers happy. At one point in time Microsoft may have been synonymous with Windows, but not any more.