Oops, that's the first time I've heard (seen) that stated as authoritively as that. When Orac speaks...
Perhaps the OEM CD Orac bought was from the "grey market" and hence the Microsoft reaction.
However, if t'were me I would be inclined to have a word with my local Trading Standards Officer in the light of the terms of the licence the user/owner is deemed to have agreed to when running the software for the first time. But then I can be reet grumpy at times when Microsoft gets heavy-handed (speaking as a fan of theirs).
I did assume that Azure had the CD including the Product Key for the OS on the "toast" PC.