so...is MS Defender really as bad as so many say?

Based on the title of your thread, yes? Why, because even a Microsoft security rep acknowledged a few years ago that MS Security Essentials, aka MS Defender now, was meant to offer "baseline" protection. And that MS provides security data to third party AV software developers to build upon. This has been pointed out by major independent security testing firms who have repeatedly reviewed MS Defender/Security Essentials scoring the lowest of all major AV packages reviewed for detection, also referred to as protection. Which is not surprising for AV designed as baseline protection. So should not be unexpected.

I've never used Kaspersky, but this would not be the first time an AV company or principle individual been accused of similar practices. Another well know AV security firm was accused of doing the same over a decade ago.

Even before that one of the big companies was writing malware (Well it was basically "Kilroy was here" level stuff) and releasing it into the wild after programming detectors and eliminators into THEIR product in order to get a jump on the competition.. Now as it happens the founder of that criminal enterprise (who is no longer affiliated with the firm) is in jail for crimes.. But not that one.

Now I'm sure you'd like to know the name of the company which is NOT based in Russia.. And I'd like to give it to you.. But.. My banker suggests I not do that.. You see. I like having money in the bank and lawyers to fight the defamation lawsuit cost money.

"In contrast {to MS}, seven of the 24 other products tested in November received scores of 100 percent: Kaspersky, Symantec/Norton, Bitdefender, Avira Internet Security, F-Secure, Comodo, and Panda Cloud-Free."

funny how all the kaspersky copycats scored dead even - but they are all flagging the same benign files, so it stands to reason.

You decide:
http://www.pcmag.com/article2/0,2817,1926596,00.asp
http://www.tomsitpro.com/articles/windows-8.1-antivirus-solutions,2-686.html
http://www.tabletpcreview.com/feature/do-windows-8-1-users-need-third-party-anti-malware-software/