Why should we? If he wants to offer half baked software that you have to pony over cash to get full features with, why should he even be welcomed in the WP community?
This problems seems to be centered around 2.7… If a lot of people are having this, it can’t just be us users making mistakes, it might be something in the software. My blog wasn’t even made before 2.7, I created it with 2.7.
I’m having this same problem. I’m using Oxyhost with PHPSendMail() enabled. Forgotten password notices send out fine though so I’m not sure what the issue is here.