I don't think the mention of Notepad was "silly" at all. It sounded to me as if Outlook was forbidden simply because it is a client application, but there are others. You have clarified above as a client application with lots of dependencies, which changes things somewhat. Since you're not using DTS package, it probably doesn't matter a whole lot, although I wonder if you can still get job email notifications. If you were using it, however, (and since a single server could manage all your DTS jobs, you could put Outlook only on that server, which could then be restarted if necessary, something we have to do about once every 3 months), I would suggest that your ruling an Outlook installation out would be counterproductive.
By the way, our DTS packages, some very complex, work very well. It's one of SQL Server 2Ks best features.