What you are hearing about is with regards to the actual installation of Windows 7 in that you can install Windows 7 on a completely formatted hard drive even though you purchased the Windows 7 Upgrade. This news has no effect on the actual license of the Windows 7 Upgrade product.
At the end of the day, you still purchased a Windows 7 Upgrade license which means to comply with the licensing terms, you need to be installing Windows 7 on a system which has already been licensed to a previous version of Windows, either a copy of Windows XP or Windows Vista. It doesn't matter if the machine currently has either of those operating systems installed, as long as your previous copy of Windows is not being used, it's absolutely fine.
For those that will follow the licensing terms of an Upgrade license, the fact that they can now do a clean installation without any trouble is good news. However, for the people that will be purchasing the Windows 7 Upgrade product at the cheapest possible price because they know they can exploit this opportunity of being able to install Windows 7 on a formatted hard drive, it's not such good news.
Just because the installation is the same between the Windows 7 Retail and the Windows 7 Upgrade product, does not make the product exactly the same. It's the license that makes the product different, not the installation method.