This is just typical, Adobe makes PDF an open file format that anyone can leverage, except Microsoft. So Microsoft was going to do someting that everyone wanted, I can not tell you how many of my web development customers ask me how they can save things as PDF documents. Adobe did not like it and made Microsoft remove the PDF functionality from Office 12 despite the fact that several other office like suites already include this functionality.
I guess this is similar to Sun and the whole Java thing. Remember that one? Sun wanted the whole world to use their clunky application platform to develop multi-platform applications. That is except the Microsoft world, where it was some sort of copyright violation or something like that.
To top all this off, I get two very expensive to print for the average business brochure books in the mail Tuesday. The cover says 'The Truth About PDF'. The first page touts the fact you can get a free copy of PDF Converter Professional for under $100! That sound strange, I thought Free was under $100. The third page has the title, The Truth is the PDF standard is a public 'open' specification. This page explains that while Adobe created PDF, there are now over 1800 hardware and software vendors that have implemented the 'open' specification. That should be over 1801, but nooooooo, they have to cry foul when the one that can make it truly a standard for everyone's desktop wants to finally implement it. The booklet goes on to explain that Office will include a scaled down version of the PDF creation ability, but so what? Have you worked with a typical user? They don't know how or need to know how to add password protection to a document. Microsoft was going to do things right, simple so everyone could get used to it, then add more features as things go forward.
Thankfully Microsoft will offer the PDF functionality in Office 12, but only as a separate download. Thanks Adobe you really show you true colors on this one.