Congrats to the MorphOS dev team.
I fear a world in which no one owns physical copies of books, software, etc. And everyone must depend upon internet acess not to mention technology as a whole to gain acess to things we have paid for.
Further more in such a world, companies can withold software you have bought, or can alter eBooks (information) which you have downloaded.
No sirt, I'd rather also still have the option of using physical copies, and as said before, you don't have to burn a CD to install the ISO update. It's all rather simple actually, doesn't even need an updater feature for people too lazy to read. 
This is slightly off-topic, but since Lurch was talking about updates done via AmiUpdate... I have AmiUpdate set to save the downloaded archives of all updates to disk. So, I can make my own physical backups if I want to. That more or less addresses the risks that you list.
Personally, I prefer having a combination of small "automatic" updates, and periodically having new ISOs with all of the small updates included. That's the "best of both worlds."
Hans
