I use Chrome for my day to day browsing, Firefox and IE8 (at work) and IE9 (at home) for testing.
I think to an extent, whatever Microsoft do with IE, the name is tainted and is going to conjure up negative images for a while. They might be able to fix this by releasing a few really good versions that get positive press and reviews and make us forget about IE 6 - 7, but it is not going to happen overnight.
In the mean time, I actually think smart phones and tablets will hurt IE, simply by making some users realise that the blue E and Internet Explorer != the internet. If they can get on the Internet in different ways on those devices, then why not on the desktops as well...
Personally, if they can release a few really good versions of IE, I will consider moving to it. I'm not loyal to any one browser and have used IE, Firefox, Chrome, Opera and Konqueror as my main browser at various times in my life - whichever suits my needs best at the time.