Use of the same license on a second machine

From the video on Adobe TV:
- the license is tied to my Adobe ID
- I use Adobe ID to download and activate software on machine number 1, then machine number 2 - works transparently.
- when I try running the software on machine number 3 I get a popup saying that this license is already activated on 2 other machines, if you continue those previous 2 machines get deactivated.
- I continue, the software starts on machine number 3
- now I get back to machine number 1 - the software starts and activates transparently as the second activation on the current license.
I don't get it.
What exacly stops me from installing software on 10 machines, and running it just one at a time - I'll just get a license deactivation prompt every now and then but I just click continue and it goes away.
I'm guessing I can actually run the software on two machines at the same time (it would ofcourse be illegal) but the prompt would not show up till I tried running it on a third one.
Is there a limit of how many Times I can deactivate/transfer a license to another machine?

I know.
I'm responsible for managing licences in our studio and am trying to understand how the new system works before we upgrade.
The workflow I presented is a very simple way a company can use the software illegaly - no need for cracking and downloads from risky sites - it's a way of cheating that you provided.
I really doubt that Adobe would do this willingly so I assume there is something I didn't understand,
Simple question is - can you move/transfer the license to new machines (above the 2 machine limit) as many times as you want, or is there a limit for this operation.
A simple reason for this question you'll find on these forums - many users complained that the possibility of installing on two machines is not enough - especially for web and software developers, who often have several laptops/OSes to check compatibility.
Now that I think about it it kinda seems that you gave them a solution to this problem - if so, why not just say it - from what I read on the forums, a lot of people would want to hear that
Thanks for your patience, this knowledge is not critical to me because we'll still be using the software in 1 license - 1 machine mode, I just like to know things

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Use of the same license on a second machine

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