It seems that finally Microsoft removed the 3 app limit "feature" from Windows 7 Starter, supposedly after the pressure from major OEM's.

From the Windows team blog announcement:

We believe these changes will make Windows 7 Starter an even more attractive option for customers who want a small notebook PC for very basic tasks, like browsing the web, checking email and personal productivity.

The thing that bugs me as strange is the fact that Windows 7 Starter does NOT include DVD playback support nor (I quote), Personalization features for changing desktop backgrounds, window colors, or sound schemes.

Well that's a bugger. Hopefully there aren't going to be a hole lot of notebooks with this version.