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When Microsoft tried integrating a web browser (IE) into their OS, it opened LOTS of security holes already fixed by most browsers (including the older, non-integrated versions of IE). Microsoft has been closing those holes ever since. It's not just a matter of popularity, it was a matter of Microsoft trying to steal market share at the expense of any other considerations. 80-90% of people use IE because they are not computer literate and IE comes prepackaged on almost any machine you buy at a store (unless you go Mac). Basically, Microsoft's ammoral business practices worked. Most people won't go through the effort of getting a different browser when a "good enough" one is already on their computer.
That being said, IE is no longer as unsafe as it once was. Even Microsoft had to bow to the pressure brought by bad press. Nowadays, when combined with a firewall, it's saftey is comparable to other browsers. I won't use it, but it can be made relatively safe.
--p
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