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Agreed. I teach Robotics using the Lego Mindstorms (we still use the RCX's) and this is truly a waste of a light sensor. I've seen lasers used with these Lego kits before, but they actually detected objects beyond the range of any other sensor on the market (even the ultrasonic proximity sensors from Mindsensors and HiTechnic). Of course the objects had to be covered in a specific reflective material, but still a lot cooler than this hack. He may as well have simply taped the laser pointer to the arm of the robot instead of wasting a perfectly good light sensor...

According to this guy (who was in the beta testing of the NXT) Lego will sell compatibility cables for the old system. That link also shows you how to make your own in the interim. I don't know how a port would handle having an old motor w/o rotation info, but I think you could program around that.

You are correct that they had no leagl basis to hinder individual experimentation, but there were many avenues open to TLG (The Lego Group) to stifle the disemination of experimenters' information. There can be little doubt that much of the hobbiest effort infringes many of TLG's copyrights (firmware source code, circuit schematics, etc.) or, more importantly, that implementing many of the hobbiest projects infringes on patents held by TLG, and I'm not talking "IP" or software patents, but honest how-sensors-work type engineering patents.

Other than one project which was asked to change its name for trademark reasons (a custom firmware supporting cross-compiling with gcc or g++ renamed from LegOS to BrickOS), TLG chose to allow the free sharing of their copyrighted and patented design information throughout the hobbiest community. They could have said "You're free to experiment, but you have to keep your discoveries to yourself," but they chose not to, even to the point of letting companies sell sensors for the RCX (the Lego Mindstorms brain) which directly compete with TLG's own oferings in the same market.

That, to me, is a company "embracing and encouraging" experimenters and hobbiests when they were under no obligation to do so.

http://www.philohome.com/hammerhead/hammerhead.htm

Someone tried to do something like that with technic lego (and succeded). Take a look at his page.

...is doing a Spherical panoramic picture from a kite, ala my friend and hero Philo.

That's pretty cool, but check out Kite Aerial Panoramic Photography from one of my heros, Philo!