Its true that this is a bad thing for the EU: Toms is right, how can people get a browser without a browser to navigate to the browsers homepage? Firefox, Safari, and linux distributions do not come on discs, sold in public spaces.
That said, I have to disagree with Tom's that the EU shouldn't of made it a point that MS hampers competition by including IE. Truth is that they do: most people will never bother trying to find another browser. But what the EU should have done is require MS to include multiple browsers, that the customer can choose from on startup.
I understand that some of you have complaints about this, that MS shouldn't have to pay someone else to include a browser they do not want to. But the fact of life right now is that Microsoft has a monopoly on the PC market. You buy Windows because all the software available runs on it, and all the software runs on Windows because most people have Windows. Why? Because Windows comes on the computer. That is why Dell or Gateway or such haven't tried including other Operating Systems as well: if they did, their customers wouldn't be able to find software to run on those operating systems and then they wouldn't buy the computer.
Software makers aren't going to code for a new and little used OS because Windows has the majority of the market. So you see, its a circular feedback loop: you have Windows because all your software runs it, all your software runs Windows because that is whats most popular, its most popular because everyone codes for Windows, everyone codes for Windows because all the consumers have Windows.
It wasn't like that in the mid nineties, when there were still multiple OS companies, but that is what the original lawsuit against MS was about back then. Heck, why do you think Mac has to code so much software for its own OS? Final Cut? All the different music editors? Its the very reason iWork exists, because originally there was not MS Office for Mac, and like hell Microsoft wanted to code for Mac. Now it does so that it can pick up the Mac users who need to transfer data to PC's.
The EU needs to find a solution in the marketplace for this Browser debacle, sure, maybe declare that people who make browsers can get a tax incentive for selling them on the shelves, or that OEM's can include browsers in with the OS they install. We all know there will be a resolution before Win7 hits, the EU may be stubborn and ungainly but it isn't stupid, someone there has probably read articles just like this one between now and the MS announcement and they are working on a fix.