Some of our members are reporting that earlier today Microsoft removed Internet Explorer 7 from Critical updates (or forced Automatic Updates if set to Automatic) to Optional updates, after a brief disappearance all together from the Windows Update site.
Initial reports indicate that Windows Server 2003 still gets IE7 as a critical update, most likely because of the in-built "hardening" that forces Internet Explorer to confirm web browsing outside of the local intranet. Hardening is set by default on Windows Server 2003, a significant security update over IE6.
However, the forced update to IE7 on Windows XP systems had Microsoft scrambling to issue a patch that blocks IE7 from being shown on Windows Update. Generally speaking IT system managers roll out a browser update only after extensive testing, not when Microsoft makes it available. I'd say this move is one where Microsoft really is listening to the customer, and has been widely appreciated in our board discussion.