http://blogs.msdn.com/virtual_pc_gu...out-the-need-for-hardware-virtualization.aspx
Sounds like MS simply dropped the ball with this one.
Dropped the ball how?
They were trying to do an Apple. Delibrately restricting (or entirely removing) some legacy featureset in order to push the market forward.
It would appear to have backfired slightly (although to be honest I've never heard anyone ever complain about it) that's why they're re-enabling it.