Okay, before this goes the rest of the page without anyone coming to agreement I will outline what happens in the event of a power crash. In this case I will discuss first the issue involving a transformer failure, because we just experienced this within the last week.
First off, this problem was caused by a squirrel stepping, rather than jumping, from line to tree. ZAP! Squirrel explodes into fried tidbits, fur flies, toenails are embedded into tree and wire. The power instantly fails. One UPS in my house dies immediately from electric surge (I'm protected by the electric companies own equipment from this happening). Because the battery dies the computer shuts off catastrophically and loses the data. The DSL line puts off smoke under the house, but we don't see it. The router melts down internally. Gone, but not before also taking one motherboard with it. One out of fourteen isn't bad, I guess.
So, this got me interested in going back and reading up on the possibilities of electrical problems. They are:
Surge: Power outside of the design limitations of equipment will cause premature failure, possibly complete failure of all electronics.
Sag: (most common) power dropouts that do not lead to power failures will still lead to data loss, corrupted data, and reduce efficiency and life span (particularly hard drive motors).
Blackout (total loss of electric): Data loss. Potential for FAT to be lost and all data on a hard drive to be lost.
Spike: Catastrophic hardware damage. Data will be lost.
Noise: A noisy line leads to glitches and errors in running programs and data files.
Noise will usually have the same affect as a failing PSU. Note that in all cases data is lost, or potentially lost.
What a UPS provides is another level of protection from these problems, as well as allowing for a graceful exit from Windows in the case of power issues.
Pretty much that's a big deal.