Microsoft's activation and more now requires an internet connection along with updates and more.

As to the recovery, this is what we plan for before the need. It's with backups of the entire PC, making media or ordering such. AFTER THE FACT recovery is harder since we get to work harder since we didn't get this done before the need arose.

There is a long standing issue with Windows and copying files to the desktop. I brought this to Redmond around 1996 and the response was "don't do this." I've seen this issue many times over the years.

So it's up to you to decide which exit to use. Some will install Linux, some will order restore media and so on. For example I could order a Windows 7 DVD from Amazon.com and install it but it won't activate without an internet connection or a phone call.