Although I am one of the first in line to hate Microsoft, Rock made a legitimate point in their defense. In order to maintain your trademark, you are required to defend it any time it is infringed upon. If Microsoft did not put pressure on this kid, then the next time somebody tried to use their name, their case would be weaker.
If you notice, they backed off the kid once their case had been made, which allowed them to defend their trademark and not ruin this guy's life. The site still remains, and he got a ton of free advertising.