[quote name='hiccupleftovers']Also, why not an internet browser at this point? The other two systems have it, so why not 360? Also, MS could pull in more people to IE, showcase silverlight, or even just put up proper flash support, something even the other two don't do properly.[/QUOTE]
I've also wondered this. In fact, it seemed ridiculous when the Xbox 360 launched without one, considering the Dreamcast even had one. One theory that I've heard is that by putting one in MS would essentially be competing with themselves. What's the point of a PC with Windows if you can do almost everything from a 360? That was the same argument for why they kept a keyboard off the system for a while, though the controller one kind of nullified that point.
Who knows, but it does seem weird.