Microsoft has just announced that it will ship Windows 7 in Europe without Internet Explorer:

The worldwide launch of Windows 7 is fast approaching, but a pending legal case raises concerns about the sufficiency of competition among the Web browsers that are available to Windows users in Europe. In January the European Commission provided its preliminary view that Microsoft's "bundling" of Internet Explorer in Windows violated European competition law.
We're committed to making Windows 7 available in Europe at the same time that it launches in the rest of the world, but we also must comply with European competition law as we launch the product. Given the pending legal proceeding, we've decided that instead of including Internet Explorer in Windows 7 in Europe, we will offer it separately and on an easy-to-install basis to both computer manufacturers and users. This means that computer manufacturers and users will be free to install Internet Explorer on Windows 7, or not, as they prefer. Of course, they will also be free, as they are today, to install other Web browsers.

My first reaction was, I guess that means you actually can remove the browser and Windows will still run, despite what Microsoft told the court in the US. My second was, if OEMs can choose to install IE, why wouldn't Microsoft just sit on them in various subtle ways to make sure it's in their best interests to always "choose" to install IE? And does this fix Vista? XP? I have some other reactions for you. Thomas Vinje of ECIS says this is "an acknowledgement of the validity of the EU Commission's case, but it is by no means enough.

More...