Windows 10 Activation requirement

Scenario 2 is more likely to just annoy the user into paying for it to be done with the annoyances.

I can see the logic in that.

However, contrary to @bro67's ridiculous assertion that the End User License Agreement does not apply to end users, just because Microsoft has chosen scenario 2 does not make it any less of a violation of the EULA to use Windows 10 without activation for any length of time.

Legally probably yes. Practically and I say this holding my breath, a number of people will ignore the EULA as they do speed limits etc. although they do this at their own risk that Microsoft will suddenly force them into activation with a new time limit at any point in the future.

Another issue I have moaned about before is Microsoft pricing for a somewhat monopolised product. I would imagine each serious Microsoft user would need at least two computers using Windows 10 Pro. That's $199 per license if you had to buy it as retail which in my opinion is overpriced.

Maybe Microsoft decided they'd rather have people running unactivated Windows, which still receive all updates, then using some activators, which
1. usually forces to disable updates
2. can contain malware on its own