Latest trend - Linux Boot CDs for Online Banking

[keith at winnetworks.com (Keith Pawson)]

Seems that a few people in the public arena have started spreading the word
about using a Linux Boot CD is the most secure way to do Internet Banking
now :-0

Not just one source either:
http://www.itnews.com.au/News/157767,nsw-police-dont-use-windows-for-interne
t-banking.aspx 
http://blogs.zdnet.com/hardware/?p=5813&tag=nl.e589 
http://blogs.techrepublic.com.com/security/?p=2492&tag=nl.e036 
http://voices.washingtonpost.com/securityfix/2009/10/avoid_windows_malware_b
ank_on.html?wprss=securityfix 
http://voices.washingtonpost.com/securityfix/2009/10/e-banking_on_a_locked_d
own_non.html?wprss=securityfix 
http://sunbeltblog.blogspot.com/2009/10/erosion-of-trust-for-online-banking.
html 

Am I right in saying this is actually a bad thing? 

I've listened to Paul and the gang go on about using live CDs such as
Backtrack and so forth is a bad thing due to components being out of date
and vulnerable - use them in a test network for research and education.

So imagine people doing this and not updating the live CD for say 6 months
or never and suppose they leave the thing running for a week or even worse
all the time. In addition this does not mitigate against DNS spoofing,
browser XSS and so forth, right?

What do you guys think about this latest trend and what do you think the
risks really are with this scenario?

Cheers