The California law example was to illustrate that trying to be clever and including both an assignment clause and a work for hire clause could actually hurt you in some jurisdictions.
That said, I'm writing from a Canadian perspective. And it's likely that our laws are different in this regard. I'll be looking it up within the next day or so.
EDIT: And I got curious enough to look it up quickly: http://www.gowlings.com/KnowledgeCentre/article.asp?pubID=22...
states that unlike the US, Canada doesn't have a work-for-hire provision, so copyright remains with the employee or contractor. Which is similar in effect to what's written in the OP. I'd want to corroborate that more before staking my business on it, but at the very least my point about checking the laws in your jurisdiction is important.
And it might not be uniform for everything in the project. There could be build tools that are developed that the client doesn't own but has a very liberal license to use while the actual product and source code copyright could be transferred to the client.
I suppose my comment was inane, but I hope that any freelancer not working in the States, should they come across this, will stop and do their homework. I'd hate for them to get screwed over. Freelancing is tough enough without factoring in bad contracts.
Employment (and what sorts of contracts imply employment) probably do vary much more by jurisdiction and may have tax, holiday, and other legal implications so I do agree homework is required.
At the least, you should look up the work-for-hire laws in your jurisdiction. Or, you know, work with a lawyer to learn your rights.
(edit: copy tweaks)