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The answer is/was simply security concerns. The protocol used by the AS sync process was totally in the clear. Probably not a big deal for an individual syncing to their desktop on their home network, but a serious concern for business implementations when joe traveler syncs from the free coffee house over the open internet to the office PC he left on so he could. Server Sync to an Exchange Server uses a totally different and secure protocol.
Business customers are important to MS. So options are to provide an option to turn on/off WiFi sync...not well received by corporate security types. If users can be unsecure, they typically will. Redesign AS altogether...trade this off over other features and OS updates...WiFi sync lost. Easiest to eliminate capability. So, there you go.
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