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Why can't MS create a new browser based on .Net?
They've already made a huge investment in the Trident engine which is now standards compliant and works fine.
It would break backwards compatibility with existing websites since you'd have to recreate the issues in IE7 for its compatibility mode
MSHTML is used by a lot of programs, introducing the CLR will introduce problems like if the program already uses the CLR, but uses a different and incompatible version to whatever "IE.NET" uses
The NSAPI and ActiveX plugin systems are here to stay. Adobe and Apple aren't going to bend over backwards to make a managed interface for Flash and QuickTime respectively.