The full version of Office isn't cheap - for sure - but most people don't get the full package. They get Home & Student, which is $120 boxed - it's cheaper if it's bundled with the laptop.
Um, that's the whole point. Home & Student boxed is now limited to just one license, and is not transferable. If that's not a price increase, I don't know what is.
edit: AND I DON'T GET IT: If according to you guys it's not affecting most people at all - why the tougher licensing? Of course they calculate that it WILL affect and thus increase the bottom line. Otherwise it doesn't make sense toughing it up.
And if it really isn't affecting anybody, why the heck doing it then? For the bad press?