Wow, this is all pretty scary. I don't think I want to buy any more dongle protected software or libraries (from any company, not just VSL). I wonder if VSL will let me sell my current licenses. I'm sure my handful of licenses don't amount to much in their eyes, but it took me quite a while to save up for them. It would be nice to be able to recoup some of that.
I'm so paranoid after reading all this. I could lose almost 2 months' salary in the blink of an eye due to the loss of that little piece of plastic. I'm not positive, but I don't think my insurance company would cover non-physical items. I'm still confused as to whether or not the licenses attached to the key are considered physical or not. If not, then it would seem that they could be replaced for a minimal processing fee (to cover steiney's fee). If so, then it seems that you could sell your license(s) like any other physical item.
Great arguments, btw, I am impressed that you kept everything so civil as it started to look like it was getting heated.