Your mod2 theory falls flat because XP wasn't shit and Vista was (immensely so). 98 didn't suck either, at least not as bad as 95. The only thing that really sucked about ME was the removal of real mode DOS (yes, I know, there are mods available to bring this back, but that requires modifying system files and so IMO is only useful for hobby or bullshit usage).
One does have to admit that Vista is way better than any 9x-based OS simply because it has the stronger NT underpinnings that make it more secure and reliable. And that half of the major "complaints" were just because something changed that they didn't like (for example, for a while there it seemed that people actually liked it when RAM went completely unused because I heard tons of bitching about SuperFetch). Also, UAC is a good thing, and the main problems with it were actually not UAC failings per se (like the hassle of trying to copy files into a protected folder and getting IIRC three or four dialogs to click through - this was an Explorer issue, as it did not happen with Directory Opus). 7 is heaps better than Vista, however.