I'm getting (sometimes) tired of answering the misleading arguments here in this thread, but you won't get away with it.
> I do not agree with your belief that newer software is always more secure.
If you are arguing against security updates, then it's like arguing against physics or vaccinations. It's not some 'opinion'. There are updates for errors which make attacks possible, which have been proofed by exploits, so what are we arguing here?
I don't want to discuss the rest you've wrote above. It's alway the same here: distractions, distractions, distractions. Whatever else you do, you'd be safer installing updates.
The other thing you should ask yourself: How many Puppy users are using it your way? How many of those who think "Oh, it's Linux, it's secure but easier to use than other distros"?
@Galbi
The browser in a Puppy distro is not secure, but if you are not visiting other websites before going to your banks website then this shouldn't be a problem. On the other hand you shouldn't overestimate the security of virtual machines. It also depends on what windows you have installed, how you're using it and if you have installed all your updates on your windows machine. I'd recommend at least to use a live CD of Puppy instead of running it in a VM, and don't visit other websites with your browser in Puppy before or while you are doing online banking.¿How secure it's to do online banking with Puppy but ínside a virtual machine running over a Windows host¿