That is exactly the trend computing seems to be heading to.
If Microsoft has its way (with palladium *ahem* Trusted Computing) Consumers will slowly but surely lose control over their own hardware.
To cast a doubt on Microsofts intentions however I must mention that is technically not
proven that Microsoft has your system info.
If they are completely legit about it, they could use a hash of identifying components and use that for checking your activation code. That hash would only with great difficulty reveal your system specs. (note: this is only a possibility. It is also very well possible they have your complete system info)
That being said: I immediately removed my MS Office XP from my system when it complained I had upgraded my videocard. I am now a happy Open Office user
