Shutting down regularly, is the best thing you can do for a PC, especially those running Win98, those running 2000 Server and XP are in a seperate category, but still a good idea.(except for servers on a UPS)
The problem is well known with 98 - memory leakage...
Try it... Cold boot your Win98 PC, then check the available system resources .. you will find a healthy PC will have about 85%+ free resources.
Now, run a program, such as MS Word, and open a document. Then toggle to the system resources and see how much that has chewed up, probably about 5-10%, now run Excell and open a file, and toggle to the resources and see how much that has chewed.. maybe another 5-10%, you can now see that each program you run will take system resources away, until you run so many programs and files that the available resources fall to 55% or less, at about 45-50% the system will crash, because there is no more resources left.
Before it gets to that stage, close all the programs and files you opened and see if the resources return to the original 85% or whatever you had from a cold boot.. it won't, and that's memory leakage.. it just dissapears, until you reboot and refresh the memory again.
If you don't shut down or restart your 98 PC after a few weeks or even days of this leakage, you will eventually get to a point of STARTING with only 60% available resources and then the act act of running only one or two programs will cause it to crash, thereby refreshing the memory and the whole process starts over again. This is one reason why it's always been a good idea to shut down Win98 boxes every day..
I recommend all my clients to shutdown workstations every night, 1) so the server can back up overnight and there are no files in use on an open workstation, and 2) in case there is a power failure over night, the workstation will be safer than if on. (The server always has a UPS)
This business of dry joints and heat and switching is really very minimal, doesn't happen in practice, and certainly not in my 20 years experience. Todays components are far more robust than that.. and as for APM... enough said, the only thing that causes more problems than APM is the screensaver. Switch off and save. (I've also seen capacitors in PSU's and for that matter UPS burst into flames, bad news if you're not home or in bed)