It's not bollocks. 99% of users who complain about spyware or viruses are IE users. Coincidence? I don't think so.
Quite right, as most people use the completely insecure defaults supplied by Microsoft. With the defaults, it is really easy to get a virus/spyware/malware. Not just via IE either. Outlook Express is also a huge gaping security hole.
Any application using the explorer libraries is also a problem, as long as you leave the "Internet Options->Security" set to the defaults. Microsoft tried to change them once and it caused a massive amount of problems because suddenly things stopped working that use to work.
I cannot use another browser due to the Sun Java problems I had when I tried using it before. If it could be cleanly removed, I would try it again, but it takes a complete OS reinstall to get rid of the Sun Java stuff. As it completely takes over the Microsoft Java stuff it is not worth the risk for me to try it and run into those problems again. Standards, that are not standards, makes one a bit nuts.
I do not run with the defaults and have never had a problem. I do not bother with anti-virus or anti-anything programs either. One thing about most software, there are always alternatives. Pick what works for you best, but do not use the security defaults as supplied by Microsoft for the OS.