Anyone can use whatever operating system or version they want for all I care, if Scawen would be better off with Windows 3.11 for game development, power to him.
I personally made the switch from XP to 7 (via Vista) out of my free will and for video/art/vector creation work it's far superior to XP. One reason being that XP is natively 32-bit only. Yes, there is a 64-bit XP version, but it's far from stable or polished for daily use. For serious video editing, 16+ gigs of RAM is a godsend and that is something XP doesn't allow for a single application to use.
Regarding OS updates, I can understand skipping some of them. I know couple updates for W7 that totally broke deleting folders on my system, so I just uninstalled and hid them from the update manager. Not installing security updates as a whole seems very risky, as crooks manage to pull off pretty impressive stunts even with temporary files from web browsers, non-IE browsers included.
:twocents: