The concern is about a) false positives, b) what happens on non-internet connected machines inside secure facilities e.g. nuclear power stations, banks, police stations, hospitals &c. &c.
So the only victims will ever be valid paying customers.
So the only victims will ever be valid paying customers.
As far as a) is concerned, call customer support. It says you might be able to get it for free if you are a victim of fraud, and if not you should be able to clear it up. You can easily bypass the activation limit by calling support, so something like a false positive should be easily correctable.
I really don't see any valid excuse against this unless you pirate. And if you don't like the system for any legitimate reason, don't buy Windows.
Don't forget, this isn't just Windows. Other companies will point at MS and use it to justify their own actions.
This system would be a problem, but only if having a working OS depended on Microsoft keeping its servers up.
Likewise, if you were using it, wouldn't you be talking to Microsoft about specially hardened version of the software (or to a linux vendor who could provide the same)?.