Of course they do. It's common sense. NT Kernel is a lot bigger than a 5-10 MByte update. Last Mac OS X update(10.6.5) was 977MB in size; replacing the whole kernel with a new compiled one. Same with ubuntu linux, they replace the kernel with a new compiled one.
What is the point in compiling software if you believe patching software doesn't affect performance?
Lets keep patching the kernel and never compile it again. I really would love to see how far MS can take it with this.
Patching = modifying compiled code. Really MS?
Patching is the act of going all frankenstein on compiled code.