Standard mode should be on
These sound to me like bad changes to.
"First thing first, yes Intranet and Internet should be treated differently."
No they shouldn't. Many have been defending Microsoft's decision, saying "Oh it's easy to turn off non-standard rendering mode via group policy." Well, in that case, it'll be easy to turn it ON via group policy; it should be off by default, rendering EVERYTHING in standards compliance mode, to be turned on for those intranets where they use non-standard web apps.
"Secondly, Microsoft did render all Internet websites in standard-compliant
mode. If you did not see the icon when visiting a website, it is even
better, because the webmaster has gone out of their way to tell IE to use
standard or quirks mode exclusively (I just coded my website to tell IE8 to
use compatibility mode by default and the icon did not appear anymore -
apparently Microsoft does this too to Hotmail). So, your claim that they
broke the promiose is misleading. Stop spreading FUD, it will only make you
(and Opera) look bad."
In other words, to make IE8 not show a broken page, "standard" pages are expected to have a non-standard, IE8 specific tag actively put in by the web page developer. I call bullshit on this (although it's par for the course for Microsoft). This button (or icon, I know several people flamed over which it was, but I don't care which..) should NOT be a broken page -- a broken key is used for sites that are insecure, a broken page implies the page is broken in some way. Personally, I would put a "IE7 mode" entry, or "standard mode" entry (DON'T call it compatibility mode, that's confusing, since IE7 is incompatible with so much stuff compared to standard browsers..) Pick that menu entry and you have a quick toggle, along with a place to add/remove URLs for standard versus non-standard rendering.