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1. Few people are using 1920x1200 screen resolution ... most are at 1024x768 with 800x600 coming in second
2. IE is necessary to develop on because, as Johnny said, it's 90% of the market. You can't develop a site in Firefox, see it works, but then go to IE and see it doesn't and go "oh well, IE sucks so I'm not wasting my time". There are many developmental problems regarding Internet Explorer that probably won't get fixed, and until the average person becomes web-savvy enough to learn that Firefox is a far superior browser, we'll have to develop for IE first and foremost.
2 Great points villian. I work at 1152x864, though, and every thing is fine.