Back then people didn't take issue with IE shipping with windows, but as Windows. MS tried its typical bullying tactics to squeeze out competitors. IE became so tightly integrated into Windows that it a) couldn't be removed without wrecking the OS, and b) enjoyed low-level (performance enhancing) OS access that was refused to competing browser/app makers.

So it was not silly to "squabble" over it. MS wanted to dominate the web as a proprietary platform and extension of Windows. This was a real threat back then.

You could be using "IE 5.8 service pack 14" right now, writing jscript (not javascript), MSHTML, and active-x plugins, enjoying horrific security issues exacerbated by a browser monoculture, and being treated as a second class citizen if you use any other browser than said IE 5.8, since you'd have to reverse engineer all the interfaces and get sued in the process to make active-x etc. work in competing browsers.