This is great news overall, the kill-switch was incredibly draconian and it's nice to see MS listened to the criticism.
Now, if they would only listen about a friggin' Family Pack. For me, the ideal setup is a decent desktop ($1000+) plus a cheap laptop (~$700), which these days are quite decent for Vista and will run most apps well.
The problem, especially in this day and age when multiple PC's exist in many households, is that the costs for insalling Vista on multiple machines is significant. It's really ridiculous that MS doesn't offer a decent discount for multiple PC's.
The best thing MS can do to discourage piracy is to allow far more affordable licenses to those of us with multiple machines.