To be honest, IE7 at first release ran better on XP than Vista in my opinion, until a few updates were released. IE7 changed the way it did many things. Its had numerous issues, with as you mention flash based programs. Exchange servers Outlook Web Access service (this has since been fixed), it caused trouble with viewing FTP sites through the browser in proper windows explorer format, and it caused issues with web-based Citrix portals and published apps. Just to name a few.IE7, all updates and patches current for all software (as of two days ago). My personal opinion, is that it's a more-or-less deliberate flaw with using IE7 on older Windows versions (XP in this case), as added incentive to switch to Vista (which I refuse to do until absolutely necessary).
So I won't pretend it hasn't had issues. However, for regular browsing I've experienced no major issues. And I'd strongly suggest that crashing repeatedly is not a common or normal behaviour for IE7. I simply have it running on far to many PC's without such behaviour to see that as normal.
That being said, if its giving you problems it may very well be easier just to swap browsers, rather than troubleshoot what might be wrong with IE7 on you're particular machine.
I'm simply suggesting you don't read intent into the issues you're having, as some conspiracy by MS as many people seem not to have the issues you have.
It is unfortunate, that due to how it integrates into the OS, one cannot really roll-back an install of IE7 to IE6. I'll also admit to finding it ill-advised of Microsoft to add IE7 as a part of Automatic Updates. If MS could be called for being underhanded on any aspect of IE7, it would be that.I use Spybot as well as Ad-Aware weekly, and Norton does its thing every Monday night at 8 PM. Disk cleanup and defrag every month (though it usually doesn't need it). But IE7(.00.60.somethingorother) hangs up horribly on this machine, on my wife's older machine... K12 (my son's virtual school) has warned everyone not to upgrade from 6 because of problems between 7 and their Flash-based software.
Some PC's just have issues. I've had numerous identical PC's ordered through business', same apps loaded, very similiar use, and one out of the batch will just have endless problems that are pretty much impossible to diagnose. Although I have to say I've seen this much more with clone or no-name PC's than with the big namebrands like Dell or HP.I'll have to try AVG, but on my wife's machine, it sucks memory badly. Then again, I think hers has some serious physical problems - it sucked from day one. SLOW internal BUS, I was told.