http://en.wikipedia.org/wiki/Tasman_(layout_engine)
And it proved how ahead of its time it was by also being abandoned by Microsoft before they allowed IE6 to stagnate on Windows when they realised that good browsers and a viable web weren't in their business interests.
The author is correct that if Micrsoft went full bore for web standards, not only would they be commiting suicide by undermining their own Office and desktop OS monopolies, they'd destroy Adobe in the process. Luckily for Adobe they're not taking that course.
(I really can't tell if you're serious about thanking Microsoft for AJAX, being forced to build rickety technologies on top of whatever random ActiveX functionality they leave lying around isn't something I'm thankful for)
So in my book they are a bit behind in the innovation department.
IE 5 was some time ago. A more recent view on the approach to standards is at http://www.tbray.org/ongoing/When/200x/2008/03/02/On-OOXML particularly in the paragraph titled "Con: Standards Process Abuse".