I noticed this problem this weekend as well... (and was going to report this, which is how I ended up posting here) didn't install the hotfix because I don't want to break my setup prior to competition in 2 weeks
However, I'm 99% sure one can uninstall all of the hotfixes. Hotfixes show up in XP in the add/remove programs dialog when you show updates.
But ya... I suspect this will cripple the USB like SP3 does. But doesn't this method negate the need to use Fboot via USB, thereby making USB speed irrelevant most of the time?
I'll try this in a few weeks and report back with the results.