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I beleive that the real issue with bringing new IE to current devices is that it should be separate download. I cannot remember much separate downloads from Microsoft for CE devices that replace exisiting functionality.
For instance, if I recall correctly, it was not possible to replace preinstalled Live Messenger with updated verison. I am not sure whether it's lack of resources (that are busy programming WM7) or just some agreements with vendors but there won't be separate download for IE.
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