Why Does Microsoft Encourage Indie Games?

I don't see what the problem is. You have a gaming exec ENCOURAGING indie games in order to improve the gaming experience. Of course their going to use the resources at their disposal... If a baseball player on your farm team hit a home run every at-bat, then you should prob move him to the majors. By the same logic, if there are great game devs out there making indie games, give them a chance at the big time by giving them cash, or bringing them onto teams that are working on AAA titles.

Sounds like you're just grasping at Microsoft-hating-straws.