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My approach to IE6 is now along the lines of this:
1. Layout should be 100% correct
2. Typography & images should be acceptable and not ugly (e.g. fixing borders, decent gifs to replace transparent pngs)
So basically what Dan C. says via Jeremy above—nothing’s broken, but nothing has to look too fancy either. The site has to work and not be ugly.
I’ve taken a look at IE6 use on my clients’ sites thru Google Analytics stats, which reinforce my gut feeling— visitor use of IE6 is very dependent on the target audience. Sites I’ve built that have a primarily young and/or artistically-inclined audience have virtually zero IE6 use. Sites visited by an older, more mainstream audience have 20% – 30% IE6 use.
So as with any other aspect of your design strategy, it’s essential to know the target market for the site.