Hi,
Here's another context. The Nokia Series 60 UI Style Guide (from 2005) touches on this issue and prohibits the dimming of unavailable menu items. They outline the rationale for hiding or erroring instead and allow for either, depending on the situation.
If/when drawing conclusions from S60 style guides, please do remember the context, software environment in which those guidelines are utilized and limitations before making generalizations to other domains. Jeff's mail makes a note about the context (first sentence above), but I just wanted to highlight its importance.
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