If anything, I think iTunes needs to be split up. They could add more to iTunes and keep it clean, but just refine it a little. It's not too cluttered, but adding safari would be a waste of time in my opinion.
How the iLife suite works now is...
iPhoto: Photo Management/a little bit of editing
iTunes: Music management + Movies, + Books + iOS device sync + store
iMovie: Video editing
Garageband: Not too good at actual music editing, better for making songs
What I want to happen, personally...
iTunes: (will have different name) Organize Photos, Music, Movies, TV shows, Podcasts, Books, Audiobooks, Apps, Mac Apps, Ringtones, Radio, etc... and has Apple Store built in too. So you organize everything here, ready to sync to multiple iOS devices.
Since you can access all your media, music, movies and photos. You can keep it more organized, so listen to music, while downloading an app and organize photos without having to waste resources using three different apps (iTunes, iPhoto and mac apps store).
Garageband (possibly change name to iTunes): Music editing
iPhoto: Photo editing
iMovie: Video editing
And that's it. I don't think iWeb and iDVD are used anymore, they might throw those out next iLife version.
I know what I said seems a little unrealistic, but NOTHING compared to merging safari and itunes! What would that be, safaritunes? lol. Just my 2 cents.
How about this:
iSync for managing everything between iDevices (apps, music, movies, books, etc)
iTunes for managing, playing, and editing music. Get rid of GarageBand.
iMovie for managing, playing, and editing video. Get rid of QuickTime and iDVD.
iPhoto for managing, viewing, and editing photos.
iChat for all person-to-person communication, including text and video. Get rid of Facetime.
iWeb for creating and browsing Web sites. Get rid of Safari.
App Store for downloading and managing apps for both iOS and OS X.
Pages for creating, reading, and editing Word documents and PDFs. Get rid of Preview.
Numbers for creating, reading, and editing Excel documents.
Keynote for creating, viewing, and editing slideshows.
Include Pages, Numbers, and Keynote on every new Mac, just like iLife.
While music, videos, apps, photos, PDFs, Word documents, etc can be used by other apps (such as iSync), everything would be manipulated only through their respective apps.