First of all, I am a registered user, and I have found flash to be the best FTP client available, which is why I purchased a key.
But, let's look at this closely -- when I enter a key, it automatically connects to the server, and determines if I have a valid key, and if I need an update. So if someone at flashfxp were to look at the logs, they would have my IP address, my key, and the version I am using. This most definitely fits the definition of "phoning home". Say what you will, this IS phoning home. Whether this procedure is outlined in the privacy statement or elsewhere, it IS phoning home.
With that being said, I see nothing wrong with this procedure for valid users. Actually I personally like it. But I can see why people who are concerned with privacy may not like this. And of course it helps thwart the warezer, which was probably its primary purpose in the first place.
I certainly hope flash doesn't fold. I love the program. Like I said, I don't have any problems with it phoning home, but let's get real - saying it doesn't phone home is simply a lie.
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