Another factor is 64-bit Windows, which became mainstream with Vista. 64-bit installs include both 64-bit and 32-bit system libraries, so it takes significantly more disk space. This is still the case with Windows 10, which might explain why some low-end devices still have 32-bit pre-installed.
256 x 256 x 3 bytes (24-bit color uncompressed) is ~200K. That's 50,000 icons. So you've only moved the question to why would Windows need 50,000 icons in raw format.
Worth mentioning here that XP support only really ended last April (POSReady).
7 is supported at least 3 more years:
> Windows 7 ESU include security updates for critical and important issues as defined by Microsoft Security Response Center (MSRC) for a maximum of three years after January 14, 2020.
https://support.microsoft.com/en-us/help/4527878/faq-about-e...
But MS really doesn't want you to use Windows 7, unless you are an "IT Professional" :)
1) recovery partitions
2) Rollback to previous versions data
3) weird things that WIMBoot (Win 8.x) did that meant that any updates were stored outside the compressed image. https://social.technet.microsoft.com/Forums/en-US/2a59b58d-9...