Agreed. It is utter B$. I don't know how quickly the guys at WotC recalculate the skills, feats and stats (abilities, special powers, and so on) if an elf polymorphs into a human (or vice versa), but I
do know that the new FAQ rules won't made it into my campaign as long as I'm the DM.
House rule for
alter self, polymorph, wildshape, shapechange: No templates, no advancements. HD and hp remain unchanged (unless some Con altering item becomes non-functional).
If a caster wants to take a monster's form, he must have encountered the non-advanced, non-templated monster before (i.e., the version in MM, MM2,...): either studying it for at least 8 hours or fighting it (or both

). Descriptions in books are not suficient.
Shapechange is an evil spell IMC if the caster takes the form of an evil monster, e.g., a balor.