I suppose it would have to happen at some point, but if the new os "vista" was the only option, what sort of upgrades would the likes of me, and many others have to do? Just doesn't seem right, even if they do extend the support.
When did you last need Microsoft support for your installation of Windows XP home?
The longer period of support for XP Pro is because that version is installed on millions of corporate desktops, and big company networks tend to lag behind the home market when it comes to adopting new operating systems. Home users are far more likely to be early adopters of new O/S versions, and consequently they'll be ahead of corporate networks when the next version comes along. The Pro users will need support for longer than the home users.
Microsoft extended the Home edition support envelope for various reasons - one of which must certainly have been concern about the possibility of the Vista release date slipping. It wouldn't really be acceptable for support to lapse on one O/S before the next version launched.
Microsoft knows about support time-frames, they've had plenty of experience at it, and they know that by the time Vista launches the need for XP home support will be greatly-reduced. The system is well-patched and secured, and will continue to be so for another couple of years. As soon as Vista hits the marketplace the security exploiters will turn their attention to it. If anything dreadful comes along you can be sure that Microsoft will patch XP Home, despite the withdrawal of their formal support program, and the vast majority of home users will be using Vista by November of 2008 in any case.
My advice is not to worry about this for a millisecond, it's a storm in a teacup. Just because MS support stops it doesn't mean that suddenly XP home will stop working - it will be just as good as it is now.