VSTi's won't make any sound

[EggyToast]

So you can choose which one to record from in case you have several MIDI input devices?

that's exactly it. It's also so that if you happen to have an instrument set up on one track that only works in Omni mode, or if you want to use more than 16 midi tracks, you can still record it without mucking about too much.

Essentially it's treating MIDI like audio -- without an armed track, the VU meter doesn't move, cos it's ignoring incoming audio. Basically it's just remaining consistent with MIDI.

I agree that the channel setup that MIDI uses means that it's less likely to be an issue anyway, but it's not that much of a change. It also means that you can keep track of which tracks are receiving MIDI, if you really want to control it that precisely.

This same problem caught me off guard when I first loaded up T2, so you're not alone ;D