The policies are fine, the problem is that it is the _manufacturers_ are not sticking to it. The Eula for XP clearly states that it's refundable, so unless the manufacturers are able to change the licensing on a MS product, what they are (and must) be selling is the hardware with a refundable copy of XP installed.

Did anyone really expect that the back end database would be checked for all use, no matter how trivial? No, of course not, so saying this is simply a statement of fact, and, if anything, an attempt to convince people that they are backing down, when it is nothing of the sort.

The most worrying aspect of the id system is the creation of the biometric database, not the card itself. The card itself may be the most visible, but it's almost a red herring, so you will see more ploys like this to show the government "giving in" on the card aspect, without any budge on the crucial part of the database itself, which is scariest part.

In short, this "watering down" claim is a decoy, and means less than nothing.