Terrorism no, fear yes. Fear fed by the all knowing fact that MS products are at risk to terrorism of hackers, spy monkeys, and evil doers the world over.
So when MS says you should fear what will happen to your computer if you don't update, I kinda take it seriously because I know that if MS says I need to be afraid, well then, they know their product best now don't they, therefore I fear and update.
Now we must fear the update too. What hidden things have Microsoft installed onto my once secure and private PC? Authentication software, anti-P2P software, key loggers, ISP trackers, and other hidden nastiness.
Fear the Update.