old msg but a search caught my eye.
anyways, XP does redraw icons if I understand what you mean by drawing. I have probably about 30 on my desktop and often, especially when I quit out of applications, I can see the visible redraw from generic file icons to the actual icon. It only takes a 1-2 seconds when I even see it, but my system is a P4 2.66ghz, 1gig DDR 3000, Radeon 9700. I can imagine that this could be a little bit of a nuisance on slower machines. I like having icons visible on my desktop for 2 main reasons. I can drag unidentified files over it, which is very handy to do with many applications when you want it to force it open with that app, and 2, for easy access because sometimes finding the software in the start menu is a PITA when the application is in a subdirectory by the company name.
I do have all shortcuts though as a habit. I do not put large folders and files on my desktop as a habit from my mac OS which has to catalog all the stuff on the desktop in a desktop DB file. The more crap in your desktop DB file and folder (In OS 9), the more it can hurt performance of the OS's frontside. It looks like windows operates in a similar fashion. Also, all stuff on the desktop is not root correct? thats why when you go to the C: dir, you will see the contents of whats on your desktop within other folders (personal documents for that user). Also allows for different desktop icon sets for each different user.