Cringley's account is very critical of Gates and Balmer, particularly on the subject of getting control of Paul Allen's shares in Microsoft should the worst happen. While this seems very cold-blooded it was probably a reasonable course of action given the circumstances - look what happened to CraigsList when one of the founders sold out to eBay.
Exactly, everything should be done above board -- when an unexpected event happens and the outcome is unknown it doesn't hurt to have a contingency plan if stuff doesn't work out.