This was pretty much always true. I remember the old versions just needed a serial. A single serial number that could be used any number of times worked just fine. Here in Iran, retailers sold Windows CDs with the same serial number printed on the covers.

Even when Windows detected that the license was fake, it basically didn't do anything. Some occasional messaging and a black background was the worst of it. I figure Microsoft understood that pressure on not-rich home users would just beef up its competition.