Did you read the article? I wouldn't characterise it as paranoia. But there's room to differ as to how serious is the breach of trust. Here's what I take from it:
1) If you think your consent is required for an update, you're wrong. That is, if MS decides to conceal it from you. Again, not the first time they've done this, viz: WGA. The outcry at the time caused some furious backpedalling by MS.
2) This update was not benign. The writer waited to see if further updates fixed the problem. Nope. The fix is gunna be more than the average computer user can competently handle. Not a peep from MS as of yet.
I'll concede that my attitude is: it's my computer dammit, and I demand full disclosure. That's why things like this annoy me.
[EDIT] Oh, and this affects LEGITIMATE installs. Do a repair install and WU will be broken on your comp.