From what I've read it seems both cancelled and expired, but it's mostly been anecdotal evidence in the form of a few complaints here and there, so I'm not sure.
I don't know if you can say that it's WAY wrong, as it's clearly a service sold as a subscription. Even though it's been nice, even if they did disable the key activations after your subscription ends, it seems like a valid (albeit asshole-ish) move.
I'd like to see an official response to this question. Last year when they started making changes to bizspark, they did a bait and switch and forced our company to transfer on to a MSDN subscription. From a small business perspective, I'm not going to renew our MSDN account if they're going to void the licenses when they change the number of keys or the subscription expires, because I'm not going to get 'locked' into this renewal once they change their agreement again. In the long run it'll be cheaper just to buy OEM without all of the hassle of transitioning to OEM keys when they change their terms.