Ars has a good, short, bit about the IE 7 push. It will answer all your questions.
Microsoft's decision to treat IE 7 as a security update, rather than an application update, makes a lot of sense and no matter how you feel about IE 7, it really is more secure and treating it this way allows a lot more people to download and use it, making them more secure. And making US more secure, by logical extension.
Jack
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