IE9 & 10 are a huge leap from IE8 but as a web developer, IE10 compares more to Firefox 3.6 in number of features: http://caniuse.com/#compare=y&b1=ie+10&b2=firefox+3.... (of course, counting features is not an accurate way to compare browsers but the point still remains).
1. I think that awful reputation is with a tiny fraction of the population.
2. I do not have data to back it up, but I would think over half of all IE users do not know it is called Internet Explorer. So, changing the name would not make a difference. Significantly changing the icon, on the other hand, would be a help desk's worst nightmare.