IRDA circular on ULIPs - good enough?

IRDA has issued circular number 20/IRDA/Actl/ULIP/09-10 placing a cap on ULIP charges.

In brief, the circular specifies the following:
- For policies with tenor less than or equal to 10 years the difference between gross and net yield cannot exceed 3 %
- For policies with tenor greater than 10 years the difference between gross and net yield cannot exceed 2.25 %
- At the time of maturity, the insurer must issue a certificate showing charges deducted, fund value and final payment made to the policyholder. The certificate must also contain the gross and net yield.

This does look like a good thing for the investor. But this does leave some unanswered questions :
1. Can this circular mean the death knell for the ignominious Fund Allocation charges, which could go as high as 80% in the first year?

2. Does this circular apply to ULIP retirement plans also?

3. As stated by Dhirendra Kumar in this article:
"It is strange that the most significant improvement in the disclosure has only been done to the statement that the policyholder will receive at maturity. So if your fifteen-year policy starts now, you have to wait only till 2024 to know the full details of what the insurer did with your money in 2009."

4. In the recently introduced "ICICI Prudential LifeStage Assure Pension" the first year premium is not invested in funds (i.e. fund allocation charge of 100% in the first year ). As per the IRDA circular existing schemes have to be modified to comply to these rules by December 31st, 2009. How can this scheme be modified to comply with IRDA regulations? Does that mean it will be wound up? ( I'm have not invested in LifeStage Assure Pension, I'm just curious to know its fate )

We have to wait for ULIPs which comply with these regulations in order to understand the extent to which it would benefit the investors.
One thing I can predict for sure, after this circular comes into effect after after October 1st, 2009, there will be more ULIPs launched with tenor less than 10 years since the insurance companies can charge you 0.75% more than for policies greater than 10 years policy. Also riders to the insurance policy will be pushed aggressively by the Insurance companies since the cost for riders benefits is not included in the calculation of net yield. Something similar was observed in Mutual Funds when SEBI banned NFO expenses for open-ended mutual funds. Large number of closed-ended mutual funds were launched since NFO expenses upto 6% could be recovered from the investor. SEBI ultimately plugged this loophole by banning NFO expenses for closed-ended funds as well.