None of what you posted there is relevant, though. Is the nightly update "necessary"? Yes. Does it have to be? Probably not. Microsoft has a history of poor "garbage collection" and if you leave your computer on for several days you kind of need a reboot to clear the pipes.... I haven't seen anything in recent years to suggest Microsoft has done a better job at that than my earliest experiences with Microsoft way back in the early 1980s.
So... the Dish nightly update... could better programming do something better and not need this? Perhaps... but it is a moot point because for whatever reason you might want to assign, they haven't. Either because they can't, or because they don't prioritize it high enough... the nightly update is a "necessary" evil.
Unless and until that changes... it is a moot point as to why it is necessary... we have to accept that it is, and work with it the best that we can.
My understanding is most of the time this is not an "update" in the computer term. No software gets changed. Most days it is simply and update to the guide data. Not to say there isn't a check of the condition of the receiver or something. I have no idea. But even if you set a receiver never to update software it will still do an update of the guide data daily. As the OP and I and others have pointed out 3 AM is not the most convenient time for many customers, which is why, I presume, Dish gave us the ability to set the update time on a generation of receivers. That they dropped this feature on the Hopper seems illogical and I hope they restore it.