Not "completely", there are ways to disable this sort of thing with AD policies. This corner of Windows has been de-emphasized ever since the "security push" of XPsp2, and it's all but been replaced by Powershell. Microsoft being Microsoft, they have not completely removed cscript.exe for compatibility reasons but they'll likely do it at some point.
In fact, I bet this "exploit" doesn't work on a properly-secured box with UAC on where a user is not running as a local admin, at least not for the part about Volume Shadow Copy.
It's a shame because I personally like CScript/WScript, it's the little scripting engine that could. Unfortunately, the Windows security model is too haphazard to let something like this free to run.