Or that if they had to format their HD and do a re-install they would have to re-activate; which while technically correct, they would already have the code to activate without ANY contact with CL.

Yes, but the "challenge" is tied to the disk. (Perhaps using its hardware serial number?). You don't need to get a new response code from CL after reformatting, but you do if you replace the drive. Even if you keep the same computer for a few years that tiny 120Gb drive is likely to start feeling cramped after all those hi-rez raytraced Poser pics you've generated. ;-)
I can understand a concern over what happens if CL goes under. On the other hand, there's already evidence that the code has been cracked... in which case options remain. (If CL does go under, and you bought a copy, then using a cracked version could hardly be called illegal -- or even immoral.)

In the "big software" world, where large companies are betting their business on software from some vendor whose future they doubt, the critical info (often including the full product source code, and certainly information to get around security measures) are escrowed somewhere, to be released "in the event". Now, if CL is strapped for cash they probably wouldn't consider that now. On the other hand, if they're serious, this is something that would ease many of the legitimate concerns.

Meanwhile, despite how much I'd love to get my hands on P5, I get the luxury of just sitting around and watching how all the hubbub settles out. They don't even want my money yet, because they aren't taking Mac preorders.