Thankfully it was virtualized and had image backups but it still can be an issue. Windows, or any software, can sometimes randomly decide to crap out, and not recover.
Yeah no. If what you were saying was true, in a large enough data centre you'd have engineers running around with install CDs playing whack-a-mole, which in turn would result in Windows not being used in such environments.
Furthermore, if it's (the situation you described) virtualised and had backups, then they can can just re-load the most recent working image and data.
If Windows craps out, there's a reason. If that wasn't statement wasn't true, my job would be a living hell, having to explain to customers "oh, Windows just does that sometimes for no reason". And no, I've never said anything like "Windows just needs reinstalling from time to time to keep your computer in good working order", because that's also BS.
This was also on a network full of worms like Sasser and other goodies, because the IT manager did not believe in Windows Update, he did not like doing that stuff during hours, and did not like paying us over time to do it off hours.
This is an order of magnitude more worrying.
An informed sensible user wouldn't be using XP. Its swiss cheese. 7 and 8.1 have made huge strides forward in terms of security both for the user and kernel bits. And even offline XP, a USB here, autoruns there, and oops its all over. These companies here have billions and are still relying on old crap. Its just ridiculous. And hospitals *shudders*.
I'm not sure you read what I wrote, or at least you attempted to say that you can speak for all informed users everywhere, which is always an amusing boast.
A poorly configured OS in terms of security is always a target. You cite XP autoplay as an example, which can be disabled with a registry modification. Furthermore, when you talk about "huge strides forward in terms of security", it's odd how the same Windows security updates are available for Win81 as Win7, and sometimes even a few Win81 specific, and that the general number of monthly updates have not decreased since the days of XP being supported.
Don't get me wrong, I do believe that newer versions of Windows are a bit more secure than older versions, and I advocate Win81 to customers because it will be in the most ideal state wrt support compared to other versions of Windows, for a longer period of time.
However, the reason why "XP won't die" as you put it is because of the following:
a) It does the job required
b) Upgrading is costly
c) Upgrading has an element of risk involved (older applications support)
d) A lot of the time, there isn't a compelling reason to upgrade (eg. your job becomes much easier because you're on a newer version of Windows)
I know XP-using customers who haven't picked up any malware over the years I've known them. I also know Windows 7/8x-using customers whom I see pretty much every year because their habits are like a malware magnet.
I sell Windows upgrades (from XP to 7/8x) based on explanations of what Windows updates normally do and so why they're important, but I also explain that it's not a black and white situation of "full security" versus "no security", simply because there's always a way in, that's why there's an ongoing process of security updates, and that the most common and easiest way in is to dupe the user into doing something stupid.