Microsoft blocks Israel’s use of its tech in mass surveillance of Palestinians

Yeah, not really. Kind of the opposite: they took action after investigation.

The assertion that Microsoft knew what it's customers were doing, that it was inspecting customer data and workloads, comes from ignorance of how cloud providers work.

False. Microsoft knew very well they had contracts with the IDF, it was announced in flowery PR all over the place, and at the beginning of the genocide there were protests against Microsofts' overt involvement.

This is just CYA. That it took Microsoft this long is incorrigible.