Yeah, I was at a little camera rep event at a local camera store last Friday. The Canon rep was all over it talking about how many cameras Canon sees damaged by non-Canon batteries and so they are getting more serious about the issue and protecting the user. Whatever.
I suspect it's more like they are seeing a big drop in $65 - $100 Canon battery sales. If Canon would simply make their batteries $45 or $50 retail from the start, more people would choose to pay that over $15 - $20 3rd party batteries. Mostly anyway. It kinda reminds me of the record companies charging $15 - $25 per CD and then they were all upset when MP3 came along and ate their lunch. Meanwhile, if CDs had been $5 - $8, most folks wouldn't have been as motivated to give up the higher quality CD.
Honestly, I'm glad the alert is there for when a genuine FAKE is used. That sucks, paying full price for a counterfit battery. But they should just say what they mean in the error - Non-Genuine Battery. Done. And don't punish the user with no status. That's just petty/crappy.