Redesigning Internet Explorer

Today's Internet explorer is not the web browser lambasted for its lack of standard's compliance, nor performance. IE10 is a nice, well performing browser and its touch optimized twin makes so much sense on a touch device. However should Microsoft start thinking about redesigning IE to be used as something more than a browser?

Should IE be re-imagined to be a mini-OS like Chrome or Opera? If IE12 offered plug-ins and better web app support would that a boon for Microsoft products like Windows RT?

Personally I think Microsoft should experiment with the idea. On the research side they have done work on the "Browser as OS" with projects like Gazelle.

What do you think?