Couple things,
First of all, Windows XP is nearly ten years old. Please stop using it. Please. Everybody, please stop using it now. Secondly, you are using a Penitum D which is a poor excuse for a dual core cpu. The pentium D was a short-lived dual-core prescott pentium 4 that was handicapped so it didn't burn up and in many ways would be surpassed by a modern dual-core Atom netbook CPU. True story, your processor is considerably weaker than pretty much anything on the market. Perhaps in YOUR case XP works better for you but for 99.95% of us other users out there, the multi-core improvements in Windows 7 are reason enough to never ever touch XP ever again.
Wow thats alot of WinXp hate right there. I'm glad to know that your experience with Win7 has been a good one. Win7 is a great OS. However like the above poster (thou with Vista) I seem to get over all a better gaming experience with WinXP even now. And before you think I'm running old hardware I'll give specs.
Machine 1-
AMD Phenom II X2 550 Black Edition Callisto 3.1GHz Socket AM3 Dual-Core Processor
ASUS M4N82 Deluxe AM3/AM2+/AM2 NVIDIA nForce 980a SLI AMD Motherboard
1 x G.SKILL 2GB (2 x 1GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) Dual Channel Kit Desktop Memory Model (added additional memory afterward for a total of 4gig)
1 x Western Digital Caviar Black WD6401AALS 640GB 7200 RPM SATA 3.0Gb/s 3.5" Internal Hard Drive -Bare Drive
1000watt psu
Machine 2-
Intel Core i7-950 Bloomfield 3.06GHz LGA 1366 130W Quad-Core Processor
ASUS Sabertooth X58 LGA 1366 Intel X58 SATA 6Gb/s USB 3.0 ATX Intel Motherboard
CORSAIR DOMINATOR 6GB (3 x 2GB) 240-Pin DDR3 SDRAM DDR3 1600 (PC3 12800) Desktop Memory Model
1 x Western Digital Caviar Black WD1002FAEX 1TB 7200 RPM SATA 6.0Gb/s 3.5" Internal Hard Drive -Bare Drive
1 x NZXT Phantom PHAN-001WT White Steel / Plastic ATX Full Tower Computer Case
900watt psu
Yeah Newegg/Tdirect loves me =) On both systems I've got dual boots running WinXP & Wins7 due to having a combo of x32 or x64 apps. My copy of Win7 is the x64 edition so it should be rocking out with the full 6gigs of memory I have in it. Due to the x32 limit for memory XP is showing 2.99gigs of memory. However even thou it's a 64bit OS & can use up to 6gigs of memory (may expand it later to 12gigs) I click XP on my boot menu every time I"m going to game. With Win7 it looks a tad better..can't fully explain it really. It might be that in my head I'm thinking it should be better and look better and run a whole lot better so it just seems like it does. Could be my viewpoint being colored b/c it "should" be better. However for being a x32 bit os with less then half the memory XP responds better gaming and just "feels" more solid to me on both systems. Oh almost forgot..video wise I've ran everything from...
2 GeForce 9800 GT 512MB 256-bit GDDR3 PCI Express 2.0 in SLI mode to my current cards BFG GTX260 GeForce GTX 260 OCX MAXCORE 55 896MB 448-bit GDDR3 PCI Express 2.0 SLIed thou soon to upgrade to a 580 I think.
So back on point..the hardware is quite recent and still Xp comes out on top.
That's a very crude generalization. You could make the same argument for practically anything then, why not go a step further and say that WIndows XP is basically Windows 2000 (because it is) or that it's Windows NT with a lot of bloat on top of it. It's not hype, it's fact go and read the benchmarks. You're right most people don't need huge CPUs and lots of RAM but you do if you want to play modern games. Windows XP is seriously old, when it came out WTC just happened. Actually, the non-retail version came out before WTC happened. George Bush was in his first year of his first term. Nintendo was still on the Nintendo 64 and Gamecube and MS's Xbox 1 hadn't been released yet. Not a single Harry Potter or LOTR film was in theaters yet. Windows 98 was younger than Vista is today. Miley Cyrus was 8 years old. Etc....
I see you doing this alot...putting world events/movies/etc toward the release date of XP. Why? I understand you want to show that it's been around awhile. Ok we get that. Anyway my whole point is I'm running both OS's and overall my experience with XP beats Win7 hands down. I still like win7 alot. Love the features it brings to the table. I can have the whole thing installed from a blank driver in under 15 mins. Over all thou for now for me XP is still in the running. Sure it's aged. But its aged well. To the OP - if it works for you bro thats all thats important.