To start with...

1.Windows Security - You wont get windows security back during restore without 
system state backups

2.Registry - You wont get windows registry back during restore without system 
state backups. Again to start with - Failure to restore registry will leave 
your applications impaired with no services to look to and thus restored apps 
will never work. 

There are several other scenarios which basically come down to apps running on 
a particular server. 

If you can afford to lose these things then you dont need system state backups. 
Once example is of simple file servers where data is the most important and 
security can be rebuilt if lost during recovery. 

Thanks.

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