Well, he said update, meaning go from Windows 7 to Windows 10, so concerns like privacy and OSS aren't likely to be the reason here. My guess is that people just got used to their OS and don't see any good reason to update if what they have works well for them, especially if they have to pay for the upgrade or their system can't handle the requirements of the latest Windows.
Depends, i see few people who's fine with with Windows 7, but not with Windows 10 due to keylogger.
Not totally obsolete, but specs are at least 5 years behind with i7 4710-MQ and GT740M. Struggles to play some titles even on low settings.
It's not latest type, but the processor have 4 core and i'm sure majority people won't call it Potato PC. I was sure you're talking about Intel Atom
Still, the Windows 10 minimum requirements on Microsoft's website are pretty reasonable:
1 gigahertz (GHz) or faster processor or SoC. RAM: 1 gigabyte (GB) for 32-bit or 2 GB for 64-bit.
Run firefox/chrome & you will ran out of RAM.