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I don't think it will have much of an impact in my opinion at least. Uninformed people will always have JS turned on. Half informed people will just turn it off because they are to lazy to seek an alternative browser. Informed people will use a Gecko based browser AND avoid Safarie.
While I approve of the attempt to fix some major security threats in IE my own homepage has items turned off? This is annoying (my homepage is local). Additioanlly SP2 just doesn't seem stable on either my Intel or AMD based systems.
Scripts should still work just fine and I didn't have any noticable issues with the scripts on my site with SP2 regardless of the patch's stability.
As always I like anyone else who favors a well balanced usage of different internet technologies, will encourage beneficial scripting and dam those who abuse scripting.
So if you want an opinion of whether you should still script, I say yes. Just don't abuse it! :D
I doubt that MS intended to switch off js when running on the local system but leave it on for the internet. I'm sure it's a cockup. Of course, they can't change it immediately because that would be admitting the mistake.
The problem perhaps lies with treating javascript with ActiveX as being equally insecure. Popups aside, provided neither has broad access to files, their is no danger - clearly MS lack confidence in their own software - presumably they are going through it carefully looking for holes. I've never used ActiveX stuff, but ensuring javascript is safe should not be a big deal.
Kaled.