Cries for blood and similar hyperbole are unlikely to be helpful in any case, but questioning the position of anyone who thought this was acceptable behaviour or who was responsible and signed off on the update seems fair, and so does expecting Microsoft to provide fair compensation if anyone really does get significantly messed around because of this action.
Both true, and yet still it doesn't mean you have to fire the poor guy if the mistake was honest, regardless of damage done. Hell, he'll probably be beating himself over it harder than you imagine if the consequences were big.
Also, this: http://i.stack.imgur.com/eJy3b.jpg.
I disagree. Would an average user, the kind of person who is going to trust updates from Microsoft and leave them on by default and therefore wind up installing in this case in the first place, necessarily realise the significance of one extra confirmation dialog? People are notoriously blind to such messages, so I'd want to see exactly what that extra human intervention involved before making any judgement here.