You are correct in what you say, however if you do the inplace repair on the original Hardware ie the one hosting hte OEM version of windows, thereby converting it to either Retail, or Volume you are not breaching any EULA restrictions, the breach only comes if you convert first. and even this is moot, because you are changing license use to an authorised volume or retail instance where restrictions on hardware do not count. The EULA Breach will only occur if you reactivate the OEM license on the Virtualised Guest this is a definate breach, I also have resevations regarding the legality of SMBIOS.reflectHost = "TRUE" as the Hardware is actually VMware hardware, and the OS is spoofed into believing it is still running on the original hardware. this may be lawful if it is actually the Original Hardware, but definately not if it is only the same Manufacturer. (the most common use case)
If you found this or any other answer useful please consider the use of the Helpful or correct buttons to award points
Tom Howarth VCP / vExpert
VMware Communities User Moderator
Blog: www.planetvm.net
contributing author for the upcoming book "VMware Virtual Infrastructure Security: Securing ESX and the Virtual Environment”.