Your post reeks of troll.
Lose 1: So any permissions based system that requires privilege escalation is "buggy as hell and totally insecure"? I suggest you open a shell in linux and type "reboot". Oh, crap - we need more privileges to do that! Would you want any individual without the correct privileges to restart the system? (Although then again, you may be running as root, in which case I might have to ask - WHY?).
Lose 2: Seriously? Users come first. They want all their stuff to work just as it used to and they (sort of) want to be secure. There's a trade off here that Microsoft is making that is a completely understandable business decision. They are trying (and for the most part, succeeding) to please everyone.
Your position reminds me of this: http://xkcd.com/538/
In the real world, software development is about trade offs and pleasing your customer base - not perfect algorithms and rms everywhere... Most users can't tell the difference between a secure system or not - but they sure as hell can tell when program XYZ won't run.