1. No, I do not think Microsoft is being unfairly challanged.
2. At a press conference Bill Gates said the requirement to include Netscape is "like asking Pepsi to include three bottles of Coca-Cola in every six-pack". I say nonsense. Windows is like a transport companies delivery truck which will carry a variety of products, each complete in their own right. Windows is the transport vehicle for Explorer and other products of which Netscape is just one more product.
3. I believe there is good argument to make Windows/NT development a separate company from all other Microsoft products. How long will it be before Word, Excel, Access, etc, are bundled with the operating system to the exlusion of others like Lotus?