Comment The Solution (Score 1) 911
Before any solution can be enacted, IE needs to be separated from the Windows internals.
Then the problem of choice can be addressed with a package manager similar to Synaptic that comes with each Windows installation. As part of the install process the user would be asked to select which programs from each category to be installed. However, this complicates the installation process, and the average user won't care about the choice, or understand the differences. So there should also be an option check by default that says "Let Microsoft choose for me."
The only problem left to solve is determining who controls the repositories.