But isn't the purpose of CoinValidation to label adresses and not coins?
I don't get why the fungibility of coins is destroyed if only adresses are impacted?
if sending coins to a new address makes them all clean again then this idea is beyond retarded and we need not care about anymore.
Reading the Forbes article I think it's pretty clear it's only what they are talking: a base of adresses link to a real world identity.
So I don't see where is the huge problem, like you said sending coin to a new adress destroy the identity link.
Read it again.
They say that Avalon mining devices will not be available to people that don't use identified addresses. This is a way of destroying the concept of using multiple addresses at all, and it also compromises the security of the address. The more you re-use addresses, the easier some criminal will find it to synthesize a valid signature for that address, and steal any money sent to it. This is one of the reasons why address re-use is discouraged.