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For me, it hasn't replaced IE, but it certainly lets me do a few things more easily than previously.
Once in a while I try to use Mozilla instead of IE. Lately it's working pretty well, but still seems considerably slower, which on this sub-1GHz machine is a problem.
One of the biggest pluses to Mozilla is a setting that will allow you to stop child windows from being opened
This sounds good but there needs to be a way to allow pop-up windows on certain sites. Web productivity applications need these for dialog boxes.

This sounds good but there needs to be a way to allow pop-up windows on certain sites. Web productivity applications need these for dialog boxes.

Agreed - that is one of many reason that I go back to IE regularly. Usually, I'll open both browsers, depending on what I'm doing/working on at the time.

This sounds good but there needs to be a way to allow pop-up windows on certain sites. Web productivity applications need these for dialog boxes

I have the pop-up's disabled in my mozilla 1.0rc3, and pop-ups do work on most sites that use them in a legit manner. I think what mozilla is doing is blocking pop-up's that are not from the same host as the one you are currently viewing.

So say for example, here on FR.com, if a pop-up tried to open an X10 banner from another host, it would fail. If FR.com opened a pop-up from FR.com it would display.

I don't know this for a fact, those are just my observations.

The odd time I run into a site this doesn't work it, and then I just disable the setting and reload the page and it's fine, and when I'm done I re-enable it.

I haven't gotten any annoying ad banners since I turned it on, and I've been happy with it.