You MUST be joking
"if you don't do anything wrong, you have nothing to hide"? Is it possible to be more ignorant? Let's not assume that people only want to hide things that are wrong. Even you, sir James, have PLENTY of things about your life you wish to keep private and for good reason - bank statements anyone? How many kids? Can I see their pictures? Of course not. We don't give others information they have no right to know, and we don't give others privileges on machines they have no right to control.
Well, that is unless you use Windows. I'm a Microsoft consultant, been drinking the kool-aid for over 15 years now. I'm not sure why Microsoft thinks they have the right to do anything like disabling features on a simple user's machine. Who gave them the right to have that much control over my computer? Oh, that's right - MICROSOFT GAVE THEMSELVES THAT RIGHT.
Microsoft was wrong to disable windows functionality just because a server could not be contacted. Less than 10% of the Windows customer base is composed of pirated copies, yet the other 90% of us must endure putative action? 90% of users did nothing wrong, and yet their software was disabled. Oh, sorry "only 12,000 systems", not 90% of all Windows users. I think I'd be in trouble if I pissed off 12,000 customers by "reducing functionality" of software I'd provided. The vast majority of the 90% also are not technically capable of simply re-installing or restoring a working Windows, as the 10% thieves would most likely be able to do. Windows only made computers easier (not easy) to use. And Vista is a step of the backwards variety.
Windows Vista - It's "pretty", but loaded with DRM and Microsoft Self-Declared Authority Services (SDAS). I can't WAIT for the day when Vista disables or removes sound and video drivers for 12,000 customers because of some errant "DRM violation". MS might be shamed into removing that crap from Windows with the next release IF AND ONLY IF the poor customers demand it and stop buying new PCs till it changes.
Linux is such a cool idea, but again, only technical people can install and use it. If it was pre-installed on all new machines, MS would never have added that DRM crap in the first place. If people knew that the OS was free, the Office products are free and just as good as MS office (and can read the same file formats!), MS would have to shape up. Right now ignorance is on the side of the Giant. But that will change, my friends... that WILL change.