Actually it is, and here I go running the risk of being flamed again, but I'll explain anyway.
The answer Jay gave is Nominet's official position; Nominet wants registrants to use its transfer process. This has very little to do with "wanting to protect transfer fee income" because the fee is set at cost recovery, not at a profit margin. Maybe the fee is wrong, but that is an operational (costing) issue for Nominet to consider. Perhaps in the future, tag holders may be allowed to electronically change the registrant field, but whether people like it or not, Nominet has a right under company law to protect its systems and a right to apply its Tag Holding rules equally to all tag holders.
As an aside; there were 2,902 active members and 3,922 active tags at 31st May 2006. It seems, from what I've seen so far, that the majority don't see too much wrong with this rule change. The way
I see it is this. Nominet cannot set its rules to cater for a handful of members or tag holders, it has to set its rules to protect the integrity of its systems and the majority of its members and tag holders. If it doesn't pre-empt the 'kiting' phenomenon in the .com domain, pretty soon we'll see the same levels of misuse of the system as in the States. If that happens, it will be a small minority compromising the integrity of the system to the detriment of the majority.
Acceptable Use Policy here.
Regards
James Conaghan