Update to Cripple?

Today my Windows XP auto-update told me that there is an update ready for my system.


Windows Genuine Advantage Notification
The Windows Genuine Advantage Notification tool notifies you if your copy of Windows is not genuine. If your system is found to be non-genuine, the tool will help you obtain a licensed copy of Windows.

Now if I have read it correctly, what it means is that if I am using a pirated copy of Windows, I will be chided that I am doing something wrong, and would probably be given a link to an online store selling a legal copy of the operating system. On the other hand, if I am using a legal copy of Windows, nothing would happen – I would probably get a pat on the back from the update, probably.

I’m sorry, what was the purpose the auto-update was solving again? If I am a genuine Windows user, why would I bother to waste my bandwidth and download something, which… does nothing for me? And if I do not use a genuine copy of Windows, does Microsoft think I am a bumbling idiot that I would waste my bandwidth and download something that could potentially cripple my computer?

The only scenario in which the auto update would do something is when it finds a non-genuine copy of Windows, in which case the user does not bother with genuine software or Microsoft’s revenue in the first place. Why would they install that update then is beyond me. Can you figure?