I'm going to offer a surprising "devil's advocate" thought here and suggest it would be a brilliant strategic move for Sam and Satya to hire Ilya anyway. Ilya likely made a major blunder, but if he can learn from the mistake (and it seems like he may be in the process of doing so) then he could potentially come out of this wiser and more effective in a leadership role that he was previously unprepared for.
I don’t think his career is over, I’m sure he will take on another leadership role. Just not a Microsoft. It’s important that screwing people over has negative consequences or people will do it all the time.