Now Mike, what you say makes sense, but there is one case where upgrading can make sense.

Say, you are in a situation where capital purchases need approval from a higher power, but repairs can be made with your own authority. So, a slow computer needs repair, so it gets a new motherboard, processor and memory. Then, a while later, the hard drive is too small, so you add a new one. But then, maybe the video card won't run the new game adequately on the kids computer, so you move the card from yours to that one, and replace yours with a new one. Then, you decide that burning dvd's is part of your backup plan so you put a new burner in. Well, the powersupply fan starts making noise, so that means a new power supply. Well, the case is that crap colour, and is really large, so you buy a nice stylish black one. All this gets done in a two year period. Then, a deal comes along where you can upgrade to the newest o/s for free sometime in the next year. If you paid attention, the only thing left of the original computer is the power cord.

So you still have the original computer. Yes, the overall effect was to cost more, but it was all upgraded under repair budgets, which means it got done without causing a serious budget meeting and the potential of the dreaded denial.