Our browsers are Mosaic-based.
For one, Mosaic was the first to show images inline. For this reason alone, not only did its popularity explode, but it made the web more interesting to the average user. For another, Netscape was made by many of the original developers of Mosaic and they built on the concept. And finally, the first Internet Explorer... was a re-branded Mosaic. Every major browser since then has been built on the concept that people became familiar with because of these.
So, basically, what you suggest might have happened... happened. Well done?
Anyway, my thought is more that if Microsoft had bought Netscape in 1994, they would likely have Frankenstein-ed the two browsers together, leaving people with no choice but a single super-bloated monster rather than a choice between two regularly bloated monsters. An alternate browser would have waited for faster Internet speeds so the open source movement could take off and gain enough contributors (and bandwidth) to do something of interest to the mainstream. I say this because with no major competition and the tactics they used to come out on top in the first place, Microsoft would have no serious challengers. Maybe a few commercial browsers for niche markets (Opera is a dubious example, since nothing really makes it "niche" except that it is). Since Mozilla itself was a huge boost to the open source movement, it would likely have taken longer for an open source browser to attract enough developers to keep up with Interscape Exigator, particularly with Microsoft having all of the clout to change technologies faster (sorry... new Windows out... gotta rewrite your entire site...). Google would likely not exist (I was going to say something much less drastic, but when you really think about it, it's probably true).
Ultimately, I'm thinking the whole scenario might have been good for Apple in a way, if they'd played it right. I imagine they could have wound up with a larger share of the home computer market. Don't know if that'd be good or bad.
But we all know that changing the timeline brings unexpected results. There's a chance it'd have gone all "A new challenger appears!"