YES! This is a must. We've had so many problems trying to get around this. This is the most often complained about part of our website. Event registration has been hit or miss because of this. We get 3-4 people saying they can't register with just about every form we put online.
I've used lightbox plugins to turn this into a javascript window and IE8, IE7, IE6 all have problems with this.
Weblink registration forms don't work in iframes on IE7.
We're left with a pop-up window or sending people out of our site completely and neither feel like good options.
Would love to see this as part of the 2.0 release. It's our most essential integration with F1.