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“Sometimes you’ll need software updates to keep using the Services. We may automatically check your version of the software and download software updates or configuration changes, including those that prevent you from accessing the Services, playing counterfeit games, or using unauthorized hardware peripheral devices.”

This citation from Microsoft triggered widespread fears that Microsoft could remotely delete apps that are pirated anytime.

Sounds very plausible, given Windows 10’s cloud integration. The only problem is the EULA the reports point to is called the Microsoft Services Agreement, which is not the Windows 10 EULA. Instead, it’s for Microsoft’s various online and cross-device services—many of which run on Windows 10—such as Cortana, Groove, Office 365 Home, Skype, Xbox Live, and Xbox and Windows games published by Microsoft.

So these terms are most likely a reiteration of what’s already happening. If you try to go online with a cracked version of a Microsoft PC game, for example, you might end up not being able to play that game.

The same goes for trying to connect to Xbox Live with pirated games or connecting unauthorized hardware peripherals to the Xbox One console.

It has been pointed out by various tech journalists that Microsoft has been taking action against Xbox pirates for years, and it’s unlikely Microsoft would go after PCs with the same zeal.

So, TL;DR VERSION:

1. IT IS ONLY FOR Cortana, Groove, Office 365 Home, Skype, Xbox Live, and Xbox and Windows games published by Microsoft.
2. IT DOES NOT APPLY TO THE OS, ie. WINDOWS 10 ITSELF!
3. MICROSOFT HAS BEEN DOING THIS FOR YEARS IN ITS GAMING CONSOLES.
4. THE PIRACY SCENE CLEARLY WARNS YOU AGAINST USING CRACKED GAMES IN ONLINE SERVICES.
5. MICROSOFT DOES NOT KNOW WHAT IS THE COLOR OF YOUR UNDERWEAR, WHO YOU SLEPT WITH, YOUR CURRENT BANK BALANCE AND WILL NEVER HAVE ANY INTEREST IN KNOWING THOSE!

Please read up and check its veracity before screaming around needlessly. There’s too many stupid people believing in things without bothering to check if it is true.