Microsoft announced today that IE8 will, in fact, act like IE8, a complete switch from their previous plan. Why the change of heart? Perhaps to get various governments off its back. From the IEBlog:

While we do not believe any current legal requirements would dictate which rendering mode a browser must use, this step clearly removes this question as a potential legal and regulatory issue.

So in the end it was government regulations, not community backlash, that got this idea nixed. Whatever the reason, I think Microsoft is making the right decision — one that will continue IE’s evolution into a standards-compliant browser.