Isn't it true that Netscape has actually increased the pace of new releases of its browser software as a result of Microsoft's browser software?
And what was Netscape's share of the browser market at the end of June 1997?
Internet Explorer is not a stand-alone browser because the relevant integration occurred at the design stage. Internet Explorer is an integral feature (of Windows '95), like a shutter in a camera or a transmission in a car.
Your real objection is that they put the browser in the operating system -- you want it out, right?
Those contracts were entered into when Microsoft had single-digit usage figures for browser software. Microsoft's contracts are not only completely unobjectionable, but pro-competitive because it reduced Netscape's dominance and gave consumers more choice.