Don
While I agree with a lot of your opinions, and from the outset I might be certainly one of the advocates on the customer side - I actually support what Oracle is doing here as far as their "premier" support goes - and feel I have to provide some sort of explanation to what "premier" support and "lifetime" support provides.
"Premier" support provides bug-fixes and updates to the product. It is traditional for JDE/PSFT/ORCL to provide this type of support for a total of 5 years from product G/A.
The reasoning behind this is that in theory, all the bugs should have been discovered in the product within 5 years of customer use - thereby freeing up development to work on newer products.
Secondly, most companies already have budgeted a major release upgrade every 5 years.
HOWEVER, due to the takeover of Peoplesoft, Oracle had a LEGAL LIABILITY that forced them to extend Xe (and ERP 8.0) support for a FURTHER 5 years. This occurred in 2003, hence premier support is over in 2013.
Now, it is important to note that Xe/ERP 8.0 has more "bugs" than later versions of the product - and comparing the number of "bugs" in the product against 8.12 for example, you can see that there is a reason to extend support.
8.12 on the other hand, is VERY stable these days. Most companies are very happy over the product, and it is totally trustworthy for running most corporations.
In comparison, 8.9 (which was the first of the new releases) was buggy as can be. It is STRONGLY recommended that customers move from 8.9 to a higher release (8.12 for example) due to the number of issues in that product.
Once a customer has implemented whatever they need to implement - they really don't usually need additional bug fixes, because their testing usually shows that the functionality they are using is reliable.
Therefore, feel free to go to 8.12. you'll have "lifetime" support beyond 2011. I think JDE/ORCL might "extend" support a little beyond 2011 because I think 9.0 won't really be available until some point in 2010 (but, after all, its their call).
Remember, 9.0 is a "dot zero" release. I wouldn't make any recommendations to upgrade to the release until :
a. its been in the field a few months
b. usually after there have been 2-3 updates to the product
Therefore, go with what you know - not the vaporware. Remember, the foundation (tools release) will be the same between 8.12 and 9.0 - so it is unlikely going to provide any technical advantage...