haha, sounds like activating Windows.
I hope to all that is holy that the Smart isn't running Windows.
As a Windows developer, I'm gonna roast in hell for saying it, but it's true.
But that sounds like it would almost eliminate the chance of duplicating someone's key by knowing VIN and 'borrowing' a dealer machine. As long as the dealer goes through the trouble and I don't lose my keys (never have in 17 years), I think that's a good thing.
BTW, my Ford Explorer's similar - key fob, coded to the vehicle itself. $150 replacement and I think the activation is just as picky. I don't think this is Smart trying to outSmart everyone, it's an industry shift for anti-theft reasons.