Not quite fair...
Okay okay, points one to four are fair enough, hardware support is vital for any operating system hoping to dominate the desktop market. Saying that point five is a necessity, however, is going a tad too far given that
a) A typical installation of Windows 9x/ME does not support remote access such as telnet
b) Upgrades such as 95-98 (comparable to, say, 2.2-2.4 in the Linux world) are costly and cannot be performed remotely even if remote access software is installed
c) There is no way in hell you could upgrade windows without rebooting. I mean, even installing a new program typically involves rebooting at least, let alone upgrading the underlying system.
When Microsoft adds these features to windows, then i will agree that they are necessary for linux to dominate the market. Until then they are a luxury. Desirable, but hardly necessary.