How Microsoft prevents abusing KMS server?? ( Chinese piracy issue )

Ok, the admin from kmip.net just announced in a Chinese forum that
their KMS server, sito.kmip.net, for Business Vista activation has closed.
The admin didn't say anything why they shut it down.

Normally, if a piracy issue only occurs in China's local communities, there
shouldn't be any problem.
However if someone brings the issue cross-border, that could be a problem.

I'm glad to see that this illegal KMS server now stop operate. Software
retailers in China just
had a hard time last weekend, worried too much that their pre-sale Vista
could get cancelled by their customers.

However, another 3 to 4 KMS servers from China, now operate to serve the
Chinese community.
This time, they keep low-profile and operate irregularly (maybe online only
few hours in a day, one or two days a week?). One of them is
binbin.xicp.net:1688

My questions is, abusing KMS server can become the main Windows piracy in
the future,
when designing the Volume Activation 2.0, did Microsoft ever think about KMS
server abusing?
Does Microsoft check how many clients have been activated by every KMS
server in a company (especially those in China)?