How is that a great response? It does not address the allegations at all, just claims the allegations are insulting.
The only great thing I see is that the blog post actually confirms what Google said. Because otherwise, it would have been easy for Microsoft to put the finger at the point where Google is wrong.
"How is that" clearly refers to Bing's response. I'll admit that I interpreted your post "I think this response is convincing" as referring to lysium's response to your post. It may have been clearer if you had written 'the response', or more directly, 'Microsoft/Bing's response'.
The only great thing I see is that the blog post actually confirms what Google said. Because otherwise, it would have been easy for Microsoft to put the finger at the point where Google is wrong.