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MS has already purchased an AV company. Expect something eventually, I say. They can't really win. If they incorporate anti-virus into Windows by default, Norton and others will get mad at them, and lots of people will be screaming anti-trust again. If they sell the AV on the side, then others may argue about a conflict of interest between exploits and plugging them (see RAGE's answer above).
The only other options I can see are to try and eradicate as many holes as possible so that viruses that exploit holes become harmless, or push something like Trusted Computing?
By the way, MS has a defrag program. It's not very good. MS has a browser, it's not very good either. Office is nice, Works is not so nice. With MS it's really anyone's guess if their AV would be any good.
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