As far as I have heard, a lot of development is moving to Team Foundation Server internally. This post on the Team Foundation Server Blog supports that: http://msmvps.com/blogs/vstsblog/archive/2008/08/17/how-microsoft-uses-team-foundation-server-internally.aspx
As far as the article you reference, it makes some statement about it being "April 1st" at the bottom, though the article is dated March 25th, so I'm not sure what the deal is with that. At this point, I would not trust a blogspot blog over an MS TFS blog.
I'm not sure it is in Microsofts interest to provide a distributed version control system. If people are interested, there are other systems that already exist. The world doesn't need to and shouldn't wait for Microsoft to give a system/idea/tool their blessing by developing a competitor to an existing project. In fact, people are so familiar with the Team Foundation Server/ Visual Source Safe methods of version control from Microsoft, that a paradigm shift of this kind would probably alienate their customer base. On the other hand, so many drink the MS kool-aid religiously, and won't do anything that isn't officially Microsoft, that the change would open the eyes of a lot of developers to alternatives. And how could Microsoft be wrong? They are the biggest software organization in the world.
I have some thoughts on using Distributed Version Control (specifically git) in the corporate workplace on my blog here: http://nerdfurio.us/blog/post.aspx?id=c64bf098-7a5a-de11-aa53-001143eed2d5