The sentiment is correct - the reasoning is bogus.
If your friend is the kind of idiot who enables every tool bar going - steering them away from IE isn't gonna help!
The reason friends don't let friends use IE is for the safety and security of those friends - it has nothing to do with looks! As has been shown here - the newer versions of IE have come on a long way in the looks and features department.
The core problem is Active X - and how vulnerable it makes people on the internet. Active X has legitimate uses - especially within corporate intranets, but it's just not safe to do your general browsing with it. Simply not supporting Active X makes FF a lot safer!
There are other safety advantages to the non-IE browsers to - IE is stuck on MS's monthly update cycle. Most software patches are released as soon as they are ready so people can get protected as soon as possible - but with MS - they hold them all back till the second Tuesday of the month (with a few rare exceptoins).
From a security point of view Chrome has the most going for it IMO. It self-updates without you having to do ANYTHING - it also bundles it's own Flash which it also keeps up to date for you, and it has it's own sand-boxed PDF reader. There are a lot of attacks targeting Adobe products over the web, so this is great.
FireFox also has some nice touches - as well as not supporting Active X, it also releases updates instantly, but you do have to OK them and restart the browser. FireFox doesn't update Flash, but it does warn you when your flash is out of date, and gives you the link to get the update - so it does make it easier to protect yourself.
Ultimately - if your family are not tech-savy, you'll save yourself a lot of hassle if you get them off IE and Outlook, and onto Chrome or FF and Thunderbird.
B.