Microsoft Watch is reporting some details on what IE 7 features would look like. It has taken a page, err… tab I mean from Firefox and would be tabbed, improved support for CSS 2.0, IDN (international domain names), transparent PNG, etc. There are rumours about a built-in news aggregator. And of course, improved security which will include reduced privilege mode by default, no cross-domain scripting and/or scripting access, improved SSL user interface and possible integration between IE 7.0 and Microsoft’s new anti-spyware service (in beta currently).
It would be interesting to see how this would change the whole ActiveX integration (though I don’t think much can be done there) and also the improvements in the management of all the addins to IE. I like these browser wars, it is good for all us consumers at the end of the day. :)