That makes it a bit better, yes, but it still have flaws. As long as I know I risk the account, the only thing that prevents me from giving the game away is knowing it is wrong. So what if I were to make a fake account? It is fully possible, you know. Basically create a fake account every one of my friends can use, and we all get free games. Of course I wouldn't, just saying it's a possibility.
Just for fun, although I am a guy from Norway, I introduced myself in a forum as a female lawyer from Texas, complete with an e-mail adress and actual adress. I even got away with it, and it really wasn't hard to do. All I needed was the zip-codes for Texas, and that took me a full minute to find online. In other words, give me thirty minutes, and I can be a person from ten different countries according to my e-mail adresses. It's not a big deal to loose one of those. The point is if I register with a full name, adress and e-mail, would you ever find out if the adress actually exist? Just something to think about.
And as for reaching the activation limit legaly, how would you possibly know if it was legal or not? If I were to activate it ten times in a row just for fun, wouldn't it still be legal? It would seem a bit questionalbe, yes, but it is legal.
And as for a determined person being able to get past the pesky cd issue, he would jsut as well get past the serial key issue as well, as he would need to do it anyway. So when you think of it like that, the lack of cd actually gives him less
Again, maybe just something to think about.