You're all acting like this is your first pc and you're completely confused by this. Come on, how many of you didn't want to see a version of Windows without IE installed deep into the OS? True alternative browser users and security geeks will see this is a huge bonus; less exploit holes in the OS and the ability to install your favourite browser(s) right from the get go.
With regards to basic home end-users becoming confused by this whole affair yet again you're missing information:
"Microsoft will offer IE8 separately and free of charge and will make it easy and convenient for PC manufacturers to preinstall IE 8 on Windows 7 machines in Europe if they so choose. PC manufacturers may choose to install an alternative browser instead of IE 8, and has always been the case, they may install multiple browsers if they wish."
Basic end users will be buying their PCs from a vendor and that vendor will be in charge of what browser ends up in the final build. If the vendor chooses to release the PC with no browser installed whatsoever then they've made a rather silly decision.. but that would still be the vendor's decision and not a fault of MS.
If anything this is a good thing for end users and the world of Internet security overall. The majority of exploits right now are carried out on unsuspecting home users running IE, if inexperienced users like this start being shifted to more secure browsers we could start to see a drop in this kind of problem.
The one concern I do have is regarding the false prophecy of programming for IE. A lot of manufacturers not too many years ago decided that their websites and web-interfaces (routers specifically) should be programmed to work on IE, not programmed to work correctly. Netgear is a good example of this and one specific problem model is the Wireless-G 318 model Virgin Media give away for free with their Medium, L and XL packages. The web interface works on alternate browsers but if you attempt to save your modified settings the outcome is unreliable.
Now your average end-user isn't likely to go ploughing around in their router settings but given how large Virgin's market share is and the fact that there are people who need to adjust these settings then it's likely to accentuate the size of the potential problem.