Yes, and in that sense Windows can provide the exact same protection, because even back in XP there was an option to encrypt/shut off your user directory, so that other users (even administrators) couldn't access it.
Is there any third party software that makes use of permissions in Windows like this effectively? Is there a way to handle this type of usage case, even for versions of Windows without user configurable permissions (i.e. versions below Pro)?
Yes, windows itself. Teach users to log on to that account ONLY if they want to use bitcoin, and make sure the user does not have malware running system-wide (because then the wallet.dat could still be nabbed when logging in to the bitcoin user).
Having software to do this without having to log on to another user would be defeating the purpose - because malware could just emulate and/or control that software.