Almost all of this did happen, but in my experience was much rarer than the article makes it sound:
- I've never heard or experienced NES cartridges rusting -- but I've had to blow on them, and I've had plenty of CDs scratched (typically when storing them without a case).
- Yes, Windows had significantly more blue screens; however, the cause of lost work was always failure to Ctrl+S (not a blue screen).
- Memory was certainly limited (and in DOS there mostly was no multi-tasking), but only fanatical players would run into the issue described. And you were aware that many games required a memory extender.
- Even now, games are massively hacked e.g. GTA V Online.
- My original PC had a TURBO button, but I never had to use it.