The fact that Windows can't read most common filesystems is indeed a sheer idiocy, most probably caused by Microsoft's arrogance and assumption that anything else doesn't worth attention since they'll dominate the world forever.
Like the old joke from the Windows 95 source code says:
if(first_time_installation)
{
make_50_megabyte_swapfile();
do_nothing_loop();
totally_screw_up_HPFS_file_system();
search_and_destroy_the_rest_of_OS_2();
hang_system();
}
http://fsinfo.noone.org/~abe/Windoof/win95.cDefinitely not worth it from MSFTs perspective.
How hard is it to just copy the data over a network or mount the image in a VM running its native OS?
Note that support for the .iso filesystem was recently added.