I'm not going to go read up on case law or the Microsoft court decisions. But I think forcing them to dike out IE was stupid.
Over the past 50 years, the concept of an operating system has gone from a basic instruction set to a multi-tiered hardware/software architecture. OSes these days are judged based on how many cool little apps and utilities they include. Not including a text editor, for example, would be ridiculous, and the OS wouldn't sell. I honestly think that Solitaire is one of the reasons why some people won't ditch Windows. Now, a browser is considered an essential app for a computer. Believe it or not, Microsoft was the first company to ship an OS that included a web browser. And they get punished for this? Good god, why?
If you want to see some real crazy embedded might-even-be-illegal shit, take a look at QuickTime. Most people only know about the crappy little frontend program that plays videos. DVD Player is another shitty little frontend. Behind it is one of the largest system frameworks in OSX. I don't even think OSX could perform the mundanest of tasks if all references to QuickTime were removed. But that's okay - it provides all kinds of weird functionality that a standalone player never could. I can't think of any reason we should punish manufacturers for coming up with innovative software technologies.
If Microsoft deserves to be sued, it's for its exclusive OEM distribution deals that punish sales partners for shipping computers that don't have Vista installed. That's exclusionary and monopolistic, and it doesn't do a goddamm thing to advance the technological art.
FYI, I like iTunes, and I like the iTunes store. The integration from network to desktop to device is just so dang convenient. The DRM is easily skirted, if you absolutely must.