Very stupid, if you ask me. They could have turned IE into very powerful development platform, capable of doing amazing things and used it as their leverage to dominate Internet just like they did with desktops, leveraging their OS. They could have built it for Linux/Mac/Windows, natively (without always missing plugins) supporting UI languages like XUL/Xaml. And they didn't.
That is simply beyond my understanding... Hey, I am not talking about early 90s, when Gates supposedly said "Internet is not important to us". I am talking late 90s - early 2000s, when Microsoft already knew Internet was big.
Source Link: http://code.google.com/support/bin/topic.py?topic=11628 http://code.google.com/support/bin/answer.py?answer=69197&topic=11629