As someone who just got into web design 9/10ths of my problems stem from trying to get sites to look the same in IE, specifically 6.
I would be so euphoric to see IE die, in its entirety, but alas i'm sure that will never happen. I do think though that IE8 heading towards standards compliance can only be good thing for the web as a whole. As for Microsoft ever letting IE journey to the great beyond, it still has close on 60% market share. That means there's an awful lot of folks out there with the msn as their homepage, and live search (at least in 7...as I remember. Its been so long since I used IE) as their default search engine. Thats gotta be putting a fair amount of $ in Micro$oft. Now you consider that microsoft is also trying to launch their own "Flash" platform (aka silverlight), I think microsoft will be very keen to maintain as much control over their own browser as the web gets more interactive and web based applications start to take over. Ergo, pretty much the entire reason Google developed their own browser, to draw people away from microsoft windows apps to web based cloud computing apps like Gmail and Google Docs. Even if MS does go with Gazelle as their new engine, I would be very surprised if it actually changes much about the way a user experiences IE.