What about that discrete update that was released a while a go that destroyed computers using pirated copies of windows or something along those lines?
Only caused a problem with certain cracking methods, not all. Newer torrents have the fix for it. If you're going to pirate, you'll have to do some research about how the cracks work.
Not even just newer torrents. I've been using a pirated copy since not long after it came out, regularly install most updates, and have never had any problems. Basically, there are two ways to crack Windows: one is like a normal crack, and replaces some files with modified versions. The other is a custom bootloader than gets added in before launching Windows, and adjusts the license information once it's loaded into memory.
The former can be easily broken by Windows updates, but the latter is pretty much undetectable, completely stable (since it doesn't change any files), and works fine with updates.
That's why some people have problems, and some don't. It depends on how they cracked it.
Not that I'm advocating pirating it. If you believe it's worth paying for, then you definitely should. But using a properly cracked version will be no less safe/stable/ethical than borrowing a friend's disc.