you need a zune HD

Microsoft doesn't want you to have the mindset that you can do 'PC' style applications on a home console, it's that simple. If you're console replaces your PC they can't sell you windows. Wanna surf the net in your living-room, buy a laptop/netbook. It's about protecting their windows monopoly. It's largely believed they entered the whole console race to try to take down PlayStation because they were afraid PlayStation would eventually start including PC functionality, and if it can do everything your PC does(why not the hardware is there) you don't need a PC anymore. Which could lose a tremendous revenue source, as well as face a real competitor in the OS market- considering people would become familiar with PS's interface.
Sony even outlined including more and more functionality is where they wanted to take PlayStation before PS2 even launched.

I'm not saying PlayStation is there yet to replacing your PC, but it's possible they could have been if left alone on the market.

Very good point.  I focused on 360 only in my reply, but in the bigger picture it's clear that MS are looking to an environment where you have a PC and a 360 and they are keen to keep them apart.  I mean I know they are in theory giving some value add via integration, etc. but look at how they are approaching Facebook, etc.  The damn things are directly available via internet, yet MS want to make the access different and controlled on 360.

Because console browsers suck. My PS3's browser blurs every video I try to watch and it takes forever to to type without a keypad. My Wii's is better on typing but still can't display video right. Why would I want this on my 360? I have a computer that could check my email faster than it takes to log into it on my PS3.

Because "console broswers" suck.

I've tried a few times on my PS3... Oh my god... it's mediocre.
Everybody got a PC to surf the web.

their browser isn't really good on a PC.

firefox it's nicer. motion controls can make browsing interesting.

I posted this somewhere else previously.

MS adding a web browser to the 360 is bad business decision for them. The last thing they want is to deter someone from actually buying a PC where they make more money. Not to mention if they do they also risk alienating their PC partners such as Dell, HP, IBM, SONY, Toshiba, and eMachines among others.

@neoraf

im typing this msg with ps3 browser, usefull dont u think? for basic browsing and checking news, checking ur ebay listings, video reviews etc its an ideal bonus.

so console browsers dont suck

well my guess is because if microsoft put a web browser on there 360 it would be like they were competing with therselves because people wouldn't need to use there home pc to browse the web when they could do it from there 360, as for the ps3 sony made it to be like a computer with web browsing, upgrading hard drives, downloading movies,etc so 360 is limited to what it can do that why when your on facebook on the 360 you can only send messages but you can't watch videos i think im not sure i don't own one.

@Skeeuk

I can do the same thing with my Laptop on my couch, playing at the same time a game on my PS3 or my 360.

Why waste time on a console broswer? This is my question.