ParanoidSSH is one of those things I think about every once in a while but never get around to setting up.(Which is a little odd, because I've been using VNC and the like to remote control Windows for years.) Whether I would have realized it was the menu hack is another question.
Call me paranoid or a Windows victim, but I would never try a major OS update via VNC.I installed a run-of-the-mill security update once and it borked my system, so I always do a backup immediately before an update.
The primary limit of a unix shell is user knowledge, which can be perfected reading man pages, etc. so that the shell's power becomes practically limitless. ssh is a secure, encrypted way to gain shell access on remote machines. You can run commands so that they will keep running even if the outside connection is closed. Its possible to detach from, then later reattach back to running commands. On many unix distros its possible to perform a complete OS fresh install or upgrade of machine A from machine B...with software packages from machine C.
Its also possible from machine A to tell gui apps to execute on machine B & display the results back to A...or to machines C, D, E given adequate privileges. On Macs, this works with X11 apps only. Apple crippled native apps so you cannot display them remotely without VNC / ARD. Why
Apple made a beautiful OS. Occasionally, IMO, they go against the grain, tweaking things that seemingly did not need tweaking, like why would you hardcode transparency? Its one thing to leave some options out of the GUI for simplicity, but why attempt to restrict the entire OS to those options only... end users will just try even more complex workarounds...and may end up contacting Support. Fortunately there are few examples like these on OS X, next to many cool, innovative features.