There's a great post that I missed last week from Chris Wilson (my boss) discussing the engagement of the IE team with the Web Standards Project.

Reading the comments it appears that there are some people that will not be satisfied whatever the IE team does. The vast majority of web developers that I have talked to are very happy with the work we are doing in IE7 and are even more pleased to hear our commitment to continued improvements in regular and frequent releases of future versions of IE. Of course we'd all like to get there sooner but anyone who has worked on a software product like this knows these things take time.