Microsoft has recently released a tool for home users to remove spyware from their computer. There are a few more details on their security site.
To me this seems like a bit of a double-standard. Do Microsoft want you to run Windows Update to patch the problems in their operating system? Or do they want you to run this "malicious software removal tool" to remove the malicious software, but not patch it?
I'm going to continue to recommend Spybot Search & Destroy. Judging by Micrsoft's brief list, Spybot covers many more vulnerabilities and malicious software, including annoying adware and cookies.
I imagine Microsoft will also struggle to ever include adware removal as part of this package. As soon as they release a tool to automatically remove software voluntarily installed by the user, however annoying, they'll become a big target for lawsuits.