IMO Ram is a complete moron. Was bageled in the first on 14% service points won, had an MTO, was broken to love and still didn't retire. Ended up losing 6-0 6-3 but apparently going in he had a shoulder issue and obviously not being able to serve confirms that.
Why would you continue to play if you're obviously injured and don't really have a chance to win? Is he just trying to destroy his arm?
Maybe he felt that the shoulder injury was not serious and that he would likely be healed in time for the R16 or QF. Michi in his current form may not have posed much of a threat, so it's possible he could win despite his serve. I don't know. In any case, I think it's classy (and indicative) of him not to retire.