OK so I can agree that Microsoft trying to keep OEMs from providing other browsers is wrong.
I don't agree that IE is broken from most peoples prespective. I had tried firefox and opera before. Gave them what I thought was a good shot, a few weeks. I did not notice any improvemnet over IE6/7. So I stuck with what I knew. Now it's diffrent, using IE8 I have noticed a diffrance and for the first time I too have noticed some things other browsers support that IE dosn't (before it was the other way around).
I understand why you'd think that. The front-end of Internet Explorer (the buttons, menu's and such) don't have serious problems. The back-end (engine, if you will) however, does. If you buy a Smart, you'd think it perfect, until you realize the engine can't keep up on the highway.
So Internet Explorer doesn't look broken. That's because it's a vicious circle, you see; the webdesigners are instructed to use little to no modern technology in order to cater for the Internet Explorer users. Those users, in turn, don't notice a large difference on the websites they visit when they try out anything else, thus they stay with Internet Explorer. So, when a new website is commissioned, the webdesigners are, again, instructed to use little to no modern technology in order to cater for the Internet Explorer users.
And while it doesn't cost the user anything to switch to another browser, except perhaps an hour or so to get completely comfortable with it, it costs the businesses if they try to create modern websites that Internet Explorer can't (correctly) display. So they rather not take that chance, until the percentage of Internet Explorer users drops enough.
The less people use Internet Explorer, the more vibrant, interactive and stunning websites will become.