Good points - I note, though, that WIN98 ain't too good at recovery or initialization compared to XP/2K/2K3.
I use statics on stuff behind a router and NAT and disable DHCP, but the single PC behind a DSL/Cable modem still looks for DHCP and, particularly if it's WIN9X, craps out if the modem isn't there.
I don't think it craps out permanently in Win9x. It can just take a really long time. The only time I've seen it regularly fail to boot is if the Novell client is installed.