I was thinking of discussing this topic at the blog I write at. But I do not think its really worth it, unless this topic gets really hot. I know Jason, I actually speak with him on a regular basis. I respect him, the company he works for and his colleagues.
Ok that being said, I think MSN would never even consider this.
Couldn't they seed their index with the Yahoo! results they paid for and are still paying for to run the non beta version of MSN Search? Why would they use the Google API or screen scrape when they have access to Yahoo!'s index?
Of course everyone needs something to seed the index. I believe most new engines start off with the Yahoo! Directory and ODP. But I am sure, others, smaller ones, use Jason's method. But MSN, I highly doubt it.