I think it goes further in that Microsoft is most likely intentionally sabotaging Windows 7. It seems that almost every Windows 7 computer I encounter has svchost.exe fully consuming a CPU core and consuming massive amounts of memory for no reason other than a failed update. This slows down the computer, consumes more energy, and makes it less secure because Windows Update is stuck in a perpetual loop. It isn't just one particular update causing the problem either, but several making correcting the issue tedious and often making the only solution to completely disable Windows Update.
Check for yourself, open task manager as an administrator on any Windows 7 computer and more often than not you will see svchost.exe consuming a full CPU core and 1GB+ memory. Disable the Windows Update service and BITS and the problem goes away.
I'm not at all surprised, updates to XP tended to cause problems when Vista came out. Micosoft's greatest competitor tends to be themselves.