Other than #6 (Legality) all the issues you mention apply to Genuine Windows as well.

#1 & #2 – Genuine Windows spies on the users. That sounds like malware. We do not know whether it contains keyloggers or other malware since Genuine Windows is closed source. After market software is much better than Defender and the rest of Genuine Windows security software. Relying on Defender the protection is like relying on a cloth mask for COVID prevention.

#3 – since Genuine Windows is closed source, we don’t know if it contains any cryptominers. Even if it didn’t, it seems to be relatively easy for hackers to take over a Genuine Windows system and do anything they wish with it.

#4 – I’d rather have no updates than have each update cause problems with my system. After every Genuine Windows update, there are articles online about how to fix the problems caused by the latest update.

#5 – Genuine Windows updates (#4) sometimes cause bricking of a system, too.

Another issue with Genuine Windows is that the user does not own the software. They only rent it.

All in all, I’d rather use Custom ISOs than Genuine Windiws.