BS, with Automatic Updates turned on, you still get to choose whether to install the updates or not.
From your own XP help file on Automatic Updates:
How does Automatic Updates work?
When you turn on Automatic Updates, Windows routinely checks the Windows Update Web site for high-priority updates that can help protect your computer from the latest viruses and other security threats. These updates can include security updates, critical updates, and service packs. Depending on the setting you choose, Windows automatically downloads and installs any high-priority updates that your computer needs, or notifies you as these updates become available.
Most people have it set for fully automatic, not the prompted "Download updates for me, but let me choose to install them." or "Notify me but don't automatically download or install them."
Besides, no one who does not read this special news will know there may be problems or that they will see a whole new version of IE. IE has never been a high-priority update; instead, only fixes have occurred behind the scenes, leaving everything about the same.
I don't see a massive SP-2 ad campaign going on, preparing people for needed change (but still making SP-2 optional).
BS to you, BS-F.