For core banking and other mission critical systems. Nobody upgrades an OS for fun, especially when the checklist for doing so is longer than both my arms put together.
This is not about security updates.
This is about using old, but still updated LTS/enterprise versions.
I don't know <<any>> enterprise mandating upgrade to the latest LTS within 6 months. Most do it 6 months before the old LTS period will expire :-))
If enterprises would consistently and massively upgrade early (for example within 1 year of a new release), vendors wouldn't need to offer this super long support on such a widespread scale. There's a reason Windows Server is supported for so many years, or RHEL, or SLES, or Solaris, or whatever.
The previous model where a major change could have support last for decades, where the system was modular in that patches could apply to any major version - that was gold.
Unfortunately today we have this "yesterday's tech is garbage" attitude, and honeslty it is mostly making all software garbage.
A worst-case 16 months sounds like an absurdly long support window by the standards of most actively developed projects; anything but the largest and most corporate of projects is unlikely to do better than that.
And it seems contradictory to complain that stable releases aren't supported long enough but you're waiting too long for new functionality. Of course everyone wants daily releases that are supported forever, but realistically with finite development effort most projects have to settle on something equivalent to "you can run -CURRENT or you can run LTS, pick your poison".