My current browser of choice is IE7 + IE7Pro extension (adds functionality of 10+ Firefox plugins) + Roboform (excellent tool for different passwords for each website and for forms filling) + IE Developer Toolbar (Microsoft) + IE DebugBar (Core Services).
IE7 has sufficiently capable core, and UI rocks. I would use IE8 (much faster), but IE7Pro is (yet) not compatible with it, Firefox is too slow (use it sometimes because of excellent Firebug extension though), Safari is great in speed, but misses AdBlocking, mouse gestures, advanced dev tools.
Microsoft does not make bad browsers.
They have, in fact, great internet technology. I would choose Live.com Custom Domains over Google Apps (for your domain) anytime, same Silverlight 2 vs. Flash 10.
The only real complain about Microsoft is we should not wait for IE7 till 2006. In 2004, I was using Mozilla, later Opera. IE7 should be here by 2004 (latest).
But maybe they had some "political" (EU ruling) reasons for this delay... With Firefox having 30% of the market, any possible "fine" should be much lower
IE8 shows Microsoft is perfectly capable writing the best browser, if they want (or dev team is "allowed to")