IS helps you stabilise the camera to reduce shake. This means that you can hand hold up to 4 stops slower than you might with an unstabilised lens - very handy for a static scene/subject. However, IS does nothing to freeze motion in your subject - sports for example - so it isn't a magic bullet for all situations.
On the other hand, f/2.8....
1. allows the use of a higher shutter speed, which will both reduce camera shake and help freeze subject motion.
2. allows the higher precision focus sensors to operate within cameras that can take advantage of such things (all of them?) and may also make manual focusing easier.
3. gives you more creative control over DOF.
4. gives a brighter image in the viewfinder.
The ideal solution in terms of capability and flexibility is the f/2.8 IS lens (that's the one I have) which gives you the best of both worlds but at a cost in terms of price, size and weight. Some people are prepared to pay that cost. Others aren't. For some applications - weddings, for example - you really need f/2.8 and IS with this type of lens.