crazy_dave: okay well in that case I've got nothing except that it is poorly worded on CD Projekt's part :)
To me, it comes off as very specifically worded, particularly because of the "ability to play on up to five computers at once" at the end.
Something they said has to give. As they have described it (and all suggestions I've seen) is simply impossible to achieve.
Either there is an internet connection required outside of installation or you don't have unlimited installations.
Claiming "activation is an installation procedure" falls under the second. In this case, any de-activated installations are not installations because they aren't fully installed. On the flip side, you would be able to uninstall a de-activated one, which means it has to be installed, thus activating it isn't part of the installation and then it falls under the first :P