Take Trident (IE's rendering engine), for example. Why can only one version of IE be installed at a time? Why does IE11 come with IE7/8/9/10 "compatibility modes" (which, much as they might claim, aren't faithful recreations of IE7/8/9/10 behavior)? Wouldn't it make more sense to just ship an IE "browser chrome" that could load up the actual rendering engine DLLs from IE6-through-11 (similar to how Google made IE connect to Chrome Frame), with increasing levels of virtualization and sandboxing as you go further back to cope with the difference in environments?
Apple and Microsoft have both got this right a few times: Apple had Rosetta for PowerPC emulation; Windows had WOW16 and WOW64. But besides these isolated instances, it really isn't a common idea.