XP turns 8 this year, and Windows XP Mode is required because of the users. If users and businesses threw out all their software and got all new stuff every time they updated the OS, there wouldn't be a need for XP mode. However, since money doesn't grow on trees and people/businesses can't afford to buy all new software, XP mode is a great way to keep all that stuff running, essentially, regardless of the host OS. With XP mode, you could theoretically be running Windows 12 and still not have to worry about old apps (games excluded), because they work inside the virtual machine, which is totally independent of the main OS.