From
cnet.com.au:
Can IE7 kill off phishing?
Phishing could soon be a thing of the past and the credit may have to go to Microsoft. That's according to a leading Web security expert who says functionality built into Internet Explorer 7 could shutter fraudulent Web sites within 18 months.
Tim Callan, a director at VeriSign, said anti-phishing guards in IE 7 -- which will warn users off malicious Web sites where they may be asked to submit personal information such as bank or credit cards details -- will help restore badly damaged consumer confidence.
Total clown-town piece, big floppy shoes and all. MS's inability to design sane and secure applications (cough outlook cough IE cough) is a major part of why phishing is such a big problem. A few small changes (the sort of thing google toolbar has had for well over a year) and they get one of the rent-a-quote crowds out there spouting Hosannahs. But I want to draw your attention to the little box on the right hand side - the 'related news' box.

That
second article:
Spoofing bug found in IE 7
Security experts have found a weakness in Internet Explorer 7 that could help crooks mask phishing scams, the type of attack Microsoft designed the browser to thwart.
IE 7, released last week, allows a Web site to display a pop-up that can contain a spoofed Web address, security monitoring company Secunia said Wednesday. An attacker could exploit this weakness to trick people into believing they are on a trusted Web site when in fact they are viewing a malicious page, Secunia said in an alert.
So I guess the answer to "Can IE7 Kill Off Phishing?" is "Not while Microsoft programmers are writing the code for it, no".
The answer to the rent-a-quote crowd - I wish I knew.