Ya know... if I were in charge at MS, I'd say screw 'em all.  All of the court cases about them being a big bad monopoly, bundling software with the OS being anti-competetive... well, just turn it around on 'em.

Strip the OS down to the bone.  Remove everything that could be considered an application, right down to notepad.  Sell every single one of these seperately.  In addition, bundle every single one into one or more suites.  Reprice everything correctly, and not only will you have the vast majority of people buying and running the exact same software, they'll be paying you slightly more than they are today.  No one can cry fowl then, but the situation will be the same, with the vast majority of users running MS products despite there being alternatives available.

The IE issue was a tad different, since the point was supposed to be that the rendering engine was available as part of the OS, for use by other applications.  But even this could be dealt with in a manner where the user could choose to replace the engine with some other engine, provided it implemented the same interfaces.  Then you'd still be back to no reason anyone could complain, yet MS dominating the market and making more money because idiots wanted them to split things up in this manner.