Ah...so all of the top brass wanted to include IE...but they couldn't do it without breaking the law...

Right.. At least in the form it was in (a standalone application).

so instead they rewrite the application including alot of the applications basic functions in OS libraries.

Yes, making the platform more compelling for ISVs, and the overall product more compelling for users, at least in theory.

And this makes it >legal<???

I'd say so, yes, since the consent agreement explicitly permitted integrated products.

There is a bevy of case law in antitrust that says you're not allowed to do that.

Then why was the tying claim thrown back?