I've read the blog that advises not to blindly install every dnn update but instead to limit the updates of production sites to those updates that matter.I would tend to agree with that. I've heard experienced people advise to stay with 04.09.05 as one of the best versions around. Some sites have problems with the new friendly url rules and would be better off staying with 05.04.04

These versions are stabilized versions, with most problems solved. Versions 05.00.00 and 05.05.05 introduced many new features and new functionality that did not immediately please everyone. They are by nature almost controversial versions.

Yet, 05.00.00 and 05.05.00 were announced as "critical update".

It got me to update from a cosey 4.2.something to DNN 5.  Critical update usually refers to an update that fixes a critical issue, mostly security related or one that fixes major functionality. It should be introduced with stable versions that have gone through some process. I doubt the wisdom in publishing critical updates in updates that include ground braking development.

Having a version 04.09.06 and 05.04.05 to fix the critical issues would have been a better strategy. These versions should have included no new features

When an update is labeled as critical, an administrator will at least think twice about his strategy to skip on updates that do not directly concern him. Critical updates fix serious issues. And if you're not sure which bug fix in the release notes is the critical one, you may want to err at the side of safety.

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The one-eyed in the land of the blind.

I am talking about the button that appears approx. once a month in the middle of the control panel and says something like "Updates Available" Every once in a while it would be red and say "Critical Updates Available".

AFAIR This was the case with 05.00.00 and 05.05.00.

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The one-eyed in the land of the blind.