It's all a matter of who is the intended audience of the source code.
The correct answer is "other programmers" (maintainers, etc). Your collegue thought it was not important and I fully understand why MS didn't hire him. I would be surprised if any big company would hire him at all!
I remember an old article titled "Typographic style is more than cosmetic" appeard on "Communications of ACM" that made experiments on the impact of good formatted code on productivity.
They took a group of programmers and gave them a test to rank them. Then they divided the group in two the two group the same assignment: modify a piece of software to add some functionality.
Only that the first group got a nicely formatted source code to work on and the others had a rather messy version of the same code.
They measured their productivty again and the end result was that the WORST programmer of the first group scored better than the BETTER programmer of the second group.
Since then, I always put extra effort in makingmy code clear to read for other humans.
For those interested in the topic I suggest reading about literate programming, intentional programming and other related concepts.