I am not going to specifically defend MS, but I think you would agree that most of these restrictions are meaningless to the average user.
Most people will get Vista with a new PC and never reinstall or move a license. Average users don't even know what virtualization is.

The really sad part is that MS is continuing to alienate the very IT workers and "geeks" who could be its biggest supporters. The number of people who would move a license more than once or use virtualization is tiny, so allowing it would cost the company almost nothing in lost sales.

But maybe MS is playing their cards right. Are you really going to set your parents up with a Linux box and provide support for them? Of course not, they already know how to use Windows and that's what they want. They don't care about restrictive EULAs that prevent them from doing something they wouldn't do anyway, they just want to send some emails.

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