I always thought this was a means of preventing piracy of windows discs.
Generally OEM discs for specific manufacturers like a Dell pass the validation checks on windows update and download sites without question on any computer they are installed on. So they would be popular to copy and share for free windows provided you only share with friend you know wouldnt get the product key barred by microsoft.
The only problem is getting around activation which is simply done using a tool that modifies winlogon.exe so it doesnt perform the activation check.
Even though some systems let you burn a disc or pay for postage of a disc, maybe that is enough to make people a little more protective of their licence and less likely to share it around.