Big news often comes in small packages and BoomTown was all over the little moves that meant big stories this week. Kara covered a massive redesign of Microsoft’s MSN homepage that follows the old car-racing-mantra-turned-Web-design ethos: Add power and lightness. Everyone breathed a sigh of relief when BoomTown covered the end of the Skype ruckus. All is forgiven, and all it took was a sizable stake in the company and seats on the board. Kara rounded things out by running a quick post about a spankin’ new feature from AllThingsD: Every Friday, the just launched “Almost Famous” will cover interesting start-ups through the eyes of their chief geeks. Kara’s all about geek love.

Digital Daily isn’t usually big into bean-counting, but this week the numbers were where it was happening. The first sales figures came back from Apple’s iPhone launch in China, and the numbers weren’t good. As of pub time for the post, only 5,000 iPhones had been (legitimately) purchased. If the Chinese numbers were a picture of modesty, the App Store’s numbers were parading through Time Square in an orange jumpsuit singing Eddie Grant’s “Electric Avenue.” The two-year-old App store’s epic popularity has pushed its already outsized download numbers past the two-billion mark. Not to be outdone with unprecedented flash, Google (GOOG) violated its own nonrule late in the week and ran a semi-ad on the Google homepage. You say ad, they say synergy, but at the end of the day it was a direct promo for Motorola’s (MOT) new Droid, which runs on Google’s Android platform.

MediaMemo started the week off right with a fresh bite from Apple (AAPL). Peter covered the revamp of Apple TV, which will now be offered for $30 a month. News from News Corp. was no surprise this week, when MediaMemo brought us the story that the media empire (and AllThingsD’s uber-parent company) was doing fine as long as you only pay attention to cable and movies. Broadcast and print? Eh, not so much. Finally, Peter asked a few probing questions of Google CEO Eric Schmidt in regard to his company’s suspicious addition of a “blog” tag attached to some Google News postings. Schmidt speculated, but the ultimate answer wasn’t, as he suggested, because of your mother.

Deep in his Personal Technology bunker, at an undisclosed location somewhere in rural Maryland, Walt got to take a crack at the new Motorola Droid this week, and his response was, well, very positive. He praised the Droid’s exceptional battery life and call clarity, even if the touchscreen wasn’t quite up to the iPhone bar. All in all, he said it was a win for Verizon (VZ) and the Google’s mobile OS.

Mossberg’s Mailbox continues to fill with questions about the speculative Apple tablet. Walt offered some other sage advice about making the Windows 7 switch with 64 bits, and what to do with all that grief over the death of Microsoft’s (MSFT) Outlook Express.

Katie was sweatin’ to the newbies this week, with an energetic review of Fitbit, a wireless fob for tracking calories and exercise stats. The Bluetooth headset-sized clip attaches to your waistband and uploads your activities to the Fitbit Web interface, where you can track how many calories you did or didn’t burn. You can also add water consumed and calories eaten. The Fitbit has been shipping since September, but won’t appear on retail shelves until after the holidays. No word yet on if it will include a “Cheesecake Factory” tab to the interface so as to allow for calorie counts that require exponents.

Like any good gadget lovers, we are all about the small and mighty here at AllThingsD. Stay tuned in with your RSS reader, Twitter feed or the good ol’ homepage. We’ll keep bringing you the little things you need to know.

The company has once again achieved top rank among Internet search engines and portals in the American Consumer Satisfaction Index, the seventh time it has done so in eight years. This year Google (GOOG) received 86 points, out of a possible 100, besting Yahoo’s (YHOO) 77 points, Microsoft’s (MSFT) 75, Ask.com’s 74 and AOL’s 70.

That’s a nice lead and one Google should have no trouble maintaining if it stays its course. This, in spite of Microsoft’s new search effort, Bing, and its “boatloads of value” search deal with Yahoo.

Though the latest ACSI scores don’t reflect either (they were complied prior to Bing’s launch and the Microsoft-Yahoo announcement) Larry Freed, president and CEO of ForeSee Results, which compiles the rankings, doesn’t see them doing much to undermine Google. As Freed notes, Google is unquestionably king of search and the only competition in ACSI’s search category is for second place.

“Where will Bing’s market share come from? From Yahoo and MSN initially and maybe from Ask.com, though Ask is a niche player with stable customer satisfaction and market share,” Freed said. “It seems unlikely that customers will actually leave Google in enough numbers to allow Bing to seriously challenge Google’s market dominance, given Google’s extremely high customer satisfaction.”

Freed adds: “People are happy with Google, so why would they switch? They might switch if Bing is better, and that’s a tall order considering Google is the second-highest scoring ACSI service-sector company, behind Newegg.com. Bing has been called a search engine war ‘game changer,’ but Google’s game will be very hard to change at this point. If anyone can do it, it’s the combined resources and market share of Yahoo and MSN.”

“The Internet is a great phenomena. I don’t see how the emergence of more information content on a network can be a bad thing for the personal computer industry. Will it cause less personal computers to sell? I think quite the opposite. Less copies of Flight Simulator or Encarta?”

– Microsoft chairman Bill Gates, 1994

In January, Wikipedia claimed nearly 97 percent of the visits that Web surfers in the United States made to online encyclopedias, according to research outfit Hitwise. MSN Encarta received 1.27 percent. Little wonder, then, that Microsoft (MSFT) is discontinuing it. The company announced Monday that it would stop selling Encarta software by June and would shut down the encyclopedia’s MSN Web sites on Oct. 31. “Encarta has been a popular product around the world for many years,” Microsoft said in a statement. However, the category of traditional encyclopedias and reference material has changed. People today seek and consume information in considerably different ways than in years past. As part of Microsoft’s goal to deliver the most effective and engaging resources for today’s consumer, it has made the decision to exit the Encarta business.”

Translation: Wikipedia ate our lunch–and our breakfast and dinner too. For evidence, one need look no further than Wikipedia itself, which updated its Encarta entry with the following passage within an hour of Microsoft’s announcement.

“Microsoft announced in March 2009 that they will cease to sell Microsoft Student and all editions of Encarta Premium software products worldwide by June 2009, citing changes in the way people seek information and in the traditional encyclopedia and reference material market as the key reasons behind the termination….Additionally, MSN Encarta web sites will be discontinued by October 31, 2009, with the exception of Encarta Japan which will be discontinued on December 31, 2009.”

“We’re very excited to have Dayne Sampson join the team, reporting to Debra Chrapaty, corporate vice president, Global Foundation Services,” a Microsoft spokesperson commented about the hire. “Operations and foundation services are key to delivering the Microsoft Software plus Services vision, and Dayne’s extensive operations and industry experience will be a strong asset for GFS and the company.”

Sampson’s departure follows similar migrations by Sean Suchter, Yahoo’s VP of search technology; Qi Lu, one of its top search scientists; Larry Heck, former VP of search & advertising sciences at Yahoo Labs; and Jan Pedersen, who was once chief scientist and VP of Yahoo’s (YHOO) Search and Advertising Technology Group. As I said last week, If Yahoo employee defections to Microsoft continue apace, there may come a day when Redmond will no longer need to buy the struggling company’s search business. It will already have acquired it.

Oh, one last thing: time to update that LinkedIn profile, Dayne…

BoomTown provided continuing coverage of the Yahoo (YHOO) merry-go-round. This time, PR head Jill Nash announced her departure. As the company’s chief communications officer, she’s had a challenging two-year run. New CEO Carol Bartz definitely has some PR ideas of her own, including offering cash prizes to employees who provide info on their colleagues who leak information to the press. Not a huge deterrent yet, apparently–it didn’t take long for BoomTown to get info on both Nash’s farewell memo and Bartz’s bounty system. Next, New Networks, the publisher behind BarelyPolitical and its hugely viral Obama Girl videos, has widened its purview to include the tech sector with BarelyDigital, which the online network has envisioned to include regular shows, tech news remixes and the like. It’s rumored that Obama Girl will be making a cameo appearance or two. If the first two features are any indication, the future looks pretty funny. In another round of executive musical chairs, Time Warner’s (TWX) AOL ad head Lynda Clarizio will be leaving the online service, to be replaced by former Yahoo ad exec Greg Coleman. Microsoft (MSFT) is launching a slick new celebrity site on MSN called Wonderwall, created, designed and produced by BermanBraun Interactive, a Hollywood company run by former Yahoo media chief Lloyd Braun. And speaking of musical chairs, MSN is clearly upping its content ante–earlier this week, it hired Yahoo’s recent media head Scott Moore, who used to work at Microsoft.

MediaMemo asked: What happens when one of the world’s richest men lets loose a swarm (a small swarm) of mosquitoes at a high-end conference? Nothing too exciting, really, but when you consider that the stunt was the publicity-generating part of Bill Gates’s talk at TED, which was a discussion of malaria and some of the problems the Bill and Melinda Gates Foundation is facing head-on, it gets pretty compelling. Kindle 2.0, the new generation of the device dubbed the “iPod of the book world” will be unveiled Monday at a New York press event, but how many of the devices have been sold thus far? Amazon’s (AMZN) not telling, but Citigroup analyst Mark Mahaney estimates the number at 500,000–and believes that the Kindle will be a $1.2 billion business next year. Obviously, a lot will depend on Monday and the new device’s reception. MediaMemo also took some time out this week to wish Facebook a happy fifth birthday, and to stack its track record next to Google’s at the same age, with interesting results. Even the pros are getting hit hard these days–in its quarterly earnings report this week, News Corp. (NWS) missed its estimates, recorded an $8.4 billion write-off and lowered its guidance. CEO Rupert Murdoch admitted that the downturn is worse than he thought. He also admitted that he spent $2.8 billion too much for Dow Jones. (News Corp. is the owner of Dow Jones and this Web site.)

Digital Daily followed the trial of four Google executives this week on criminal charges of defamation and breach of privacy after a much-publicized two-year investigation. Google (GOOG) insists the charges are unwarranted and “akin to prosecuting mail service employees for hate speech letters sent in the post.” Clearly, the ultimate outcome will have a huge impact on the future of a free, open Internet. MySpace said this week that it has identified and ousted 90,000 registered sex offenders–and those are just the ones brilliant enough to use their real names. There’s no way of knowing how many are actually using the service or how to prevent them from re-registering once they’re deleted. A free an open Internet, indeed. DD also pondered the future (or lack thereof) of the Motorola (MOT) handset division. Co-CEO Sanjay Jha says the company is committed to making the business work, but its products are looking boring and outdated, and a turnaround would be prohibitively expensive to execute. In the words of one analyst, the company’s problems are “gruesome.” On the other end of the spectrum, Microsoft continues to vehemently deny reports that it’ll be producing its own smartphone. In a report this week, analysts from Broadpoint.AmTech speculated that the device could be uncrated later this month at the Mobile World Congress in Barcelona. Meanwhile, it’s been up in the air for two years whether or not iPhones will ever be uncrated in historic Georgetown. Apple (AAPL) has been around the table a few times now with preservationists wary of the architectural impact of an Apple store, no matter how much the business traffic is needed in the neighborhood. Looks like perseverance may have finally paid off, though–Georgetown’s Apple store could open later this year.

In Personal Technology this week, Walt Mossberg took a look at a program called Foxmarks, which sets out to synchronize bookmarks among all of your browsers and all of your machines. Sound a little too handy to actually work well? Walt found it does a pretty good job, with a few caveats. In Mossberg’s Mailbox, Walt responds to readers who want to know more about doing “techie” maintenance on their PCs to keep them running well, whether or not to buy a 15-inch MacBook Pro, and options for email within Windows 7, which won’t ship with a built-in email program. In the Mossberg Solution, Katherine Boehret tests Google Latitude, an opt-in program that lets users track one another’s movements on their smartphones using GPS, Wi-Fi, and cell towers. Kind of like Gawker Stalker, only with permission and without Lindsay Lohan (unless you happen to be Lindsay Lohan).

Last but not least, Silicon Valley lost one of its own this week. The widely admired and much loved Mike Homer, whose rare, severe illness was a rallying point for many over the past months, passed away last weekend and was laid to rest on Thursday.

More next week.

A surprising trend, given the general state of affairs over at Yahoo recently and one that may, may, bode well for the first-quarter results the company is due to report on April 22. In the face of Microsoft’s (MSFT) hostile takeover offer and its claims that Yahoo’s business is on a fast downward spiral, Yahoo CEO Jerry Yang has insisted that the company will meet its first-quarter projections.

That may well be the case, if SearchIgnite’s metrics prove accurate. Said Roger Barnette, president of SearchIgnite, “If these numbers are an accurate reflection of the market, it could lead Yahoo to surpass expectations.“

Meanwhile, spending by search advertisers on MSN declined to 5.4% from 5.9%, quarter over quarter. No wonder Microsoft wants Yahoo so badly.