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Is Windows CardSpace flawed?

Windows CardSpace is a framework developed by Microsoft which securely stores digital identities of a person, and provides an interface for choosing the identity for a particular transaction, such as logging in to a website. A good introduction to CardSpace can be found at asp.net Pro (Is CardSpace in the Cards for Your Web Site?)

One of the main issues with CardSpace currently is that you have to use an EV certificate or else users will receive this message:

This presents a problem to those who want use CardSpace without forking over the extra dough for an EV certificate. More discussion on this topic can be found on Kim Cameron's Identity Blog (Including the whole spectrum of use cases), Mostly Mr. SQL (GRRRR! Cardspace. What a useless steaming pile…), and Eric Norman's Blog (Human Engineering with EV Certificates)

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