UPDATE: After a bit of digging it looks like they started the username recycling policy in 2013, may have quietly stopped doing that in 2018 but formalized no longer doing that in 2021: https://web.archive.org/web/20230627104616/https://www.micro...
"Summary of changes to the Microsoft Services Agreement – June 15, 2021 [...] In the Outlook and Office Services sections, we’ve removed the Outlook.com section to clarify that an email address or username is not recycled into our system or assigned to another user."
Outlook.com certainly has to show up as an expense, one that Microsoft would like to reduce. When you look at what other providers charge for a single email account, it's hard to see Microsoft making money of Outlook.com. There's obviously something to be said for scale, but still, it must cost them something.
Can you actually use a non-outlook account for windows? Or are you talking about a different kind of "ms account"?
it also funnels people into using exchange for work. more like a "marketing expense".