The improvements (you may question use of that term) in the updates you decline, ... benefit the existing Windows 7 and Windows 8 systems.
........
the more information Microsoft collect on the way Windows works or fails to work, the better they will be able to fix problems that affect me as a user of their software.
Gerry,
How can you (or anyone outside Microsoft) know whether the set of KB updates that many people are choosing not to install (because they nag/coerce users into installing Windows 10) actually provide any benefits to Windows 7. You may want to believe that these Windows 10 coercion updates have some hidden and undocumented benefit to Windows 7, but I do not think you have any way of knowing that for sure.
Likewise, there is no way of knowing if Microsoft is actually using the information (that Windows 10 collects) to actually fix bugs. Of course that's what Microsoft says, but ultimately it comes down to whether one can trust what Microsoft does/says.
Given Microsoft's behavior over the past year in their attempts to get Windows 10 installed on a billion computers, I no longer trust them. Their motivation seems to be getting Windows 10 installed in spite of the customer's desires to the contrary.
I do not want Windows 10 installed on my computers .... neither now nor in the future. Therefore I do not believe that (by choosing to not install the coercive updates) my Windows 7 operating system is "damaged goods". Perhaps by avoiding the coercive updates, I will not be able to easily install Windows 10, but that is OK with me (I do not want Window 10).
For the past year, I have avoided every one of Microsoft's coercive updates, and my computers are running Windows 7 with no problems. Microsoft is a master at FUD (fear, uncertainty, and doubt). Microsoft would have us believe that by not installing all of the Windows 10 coercive updates, we are missing some critical benefit to Windows 7 or 8 (but there is no proof to that). They would also have us believe that Windows 10 collection of information is for customer's benefit (fixing Windows 10 bugs) as opposed to Microsoft's benefit (selling and/or using that information for marketing). If Microsoft wants/needs information on bugs in Windows 10, they need to look no further than the Windows 10 forum on this site (where many many Windows 10 bugs are described by end users).
You seem to implicitly trust Microsoft and want to keep your options open for Windows 10. That's great for you. But many customers no longer trust Microsoft and have no desire to ever upgrade to Windows 10. We (who do not want Windows 10) are getting tired of Microsoft's coercive attempts to get Windows 10 installed on our computers.