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An even bigger IE hole is that the browser is directly tied to the operating system, and so an attack on IE means an attack on Windows itself. Microsoft is taking a halfway measure against this in the next version of IE. In Vista, but not in XP, there will be a "protected mode" that isolates IE from the operating system and other applications, so IE won't be able to write to a file without a user's consent.
Does all this mean that IE will be superior to Firefox? I guess not..But to squash Firefox, it doesn't have to -- it just has to improve its security, and add a few extra features. It looks like IE 7 is on the road to doing that. Given that the beta of Firefox 1.5 doesn't add many big new features, aside from handling auto-updates better, this could mean that IE will start to take back the ground it's lost to the Open Source browser.
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