Microsoft bundling software with operating systems?

Proponents contended that the browser is an integral part of the operating system. Not a separate application, and is a natural progression in the evolution of the operating system.

Is Microsoft being unfair?

Microsoft bundling software with operating systems?norton ghost

This is an old issue that many still have with Microsoft. To answer your specific point, including a browser with the operating system makes sense but only if it is an "optional" component and not tightly coupled like Internet Explorer. Other operating systems often include a default browser but users can easily uninstall that (or choose not to install) and replace it with a browser of the users choice.

As for other applications, these are generally included as supplemental applications (on separate media if you acquired it on disk). Microsoft took a very different approach and tightly integrated most of the applications which has its pros and cons. Theoretically with the coupling, everything should work better together. While this certainly does help the consumer in some ways, it does remove "choice" from the user. On the negative side, competition suffers due to vendor lockout. Opponents of Microsoft have long argued that they can't compete against Microsoft because Microsoft works at a development layer below what they expose to external vendors and that Microsoft also dictates to computer vendors what can/can't be installed on systems for sale.