Yes, IE7 has tabs, a developer wrote in a Microsoft-sanctioned blog. The tabbed browsing experience in the upcoming IE7 beta is pretty basic. Expect additional end-user functionality to come in after the beta.
IE 6.0 and previous versions require a new window to be opened if the user wants to have more than one page open at the same time, whereas competing browsers have tabs, so many pages can be opened in the same window, reducing clutter and aiding navigation.
Initially, we had some concerns around complexity and consistency… will it confuse users more than it benefits them? the developer, Dean, wrote. I think we made the wrong decision here initially, and we’re making the right one now.