If you install application software on a separate non-OS partition, it will still install registry keys and DLLs on your OS partition. So if either partition (or separate hard drive) crashes you will have to reinstall all of the application software.
The only benefit I can see is if your separate non-OS partition or separate hard drive dies, Windows would still run.
The only benefit I can see is if your separate non-OS partition or separate hard drive dies, Windows would still run.