I would like to read a convincing account of how M$ would extend and extinguish the Linux kernel (or GNU userland for that matter). All I can imagine they care about is a) making sure Azure succeeds and b) getting users on monthly subscriptions for everything.
It's not that I don't believe the latter 2 of the 3 E's aren't plausible, I just haven't read a convincing account of what they could feasibly be and why M$ would have that incentive beyond spite. Satya Nadella seems like a paragon of neo-liberalism (everybody should be nice and get along, just let us maximise profits).
First of all, that later talk you linked to, doesn't really prove anything. It's really a plea from a journalist to MS. He wishes they just talked to him, but they just refuse to do so.
Whether or not the allegations are correct/plausible, I feel it is very important to have them. At this point, we can't say for sure as to what the eventual goals are (since they won't talk openly about it), but it is always good to have criticism, especially considering their past as a company, not just the CEO...
Those aren't "Embrace, Extend, Extinguish", that expression refers to taking an open system or standard and embracing it to get a marketshare (think IE for the web platform), extending it with proprietary features (like activex or dx-filters in IE) and then try to make those proprietary features such a defining part of the platform that all competition is "Extinguished".
Nokia and Skype were both bought by MS and mismanaged. There is nothing about "Embrace, Extend, Extinguish" that applies.