I just ran into this yesterday, and could not get a count for Null values if I was using the field with the Nulls in it for the count(), regardless of the ANSI Nulls setting. If I used a different field, such as the ID field, in the count(), I did get the count correctly.
Select Count(PremiumGroup), PremiumGroup From RetireePremiums
Group by PremiumGroup
Order by PremiumGroup
195 New LA
There are actually over 2000 records with a Null in that field.
But in any case, Null can be undetermined value, value not assigned, absence of value, etc. but in reality it is the same thing, no value, and should be recognized as its own special value to make logic easier when programming.
I am unable to imagine how making Nulls easier to deal with could make life more difficult for any of us, or our logic.