There was a time, last November, when, if I understand it correctly, setuptools
on the standard Python that comes with Mac OS X wouldn't accept fat eggs for Mac
OS X 10.4 or higher.

Here is the pythonmac-sig discussion:

http://www.nabble.com/does-pkg_resources-think-that-%22macosx-10.3%22-is-incompatible-with-10.5--to13865060.html#a13865060

Ronald Oussoren has committed the fix for the comparison of Mac OS X version
numbers from '<' to '>=', so as of Python 2.5.2 that problem is fixed.  However,
he mentioned other problems which I didn't understand:

"""the config/Makefile in  
Apple's Python.framework isn't configured for building universal  
binaries.

And to make matters even worse: I'm pretty sure that setuptools used  
to know that 'fat' builds are compatible with 'i386' and 'ppc'  
architectures (at least on OSX), but that code no longer seems to be  
there.
"""

What is the status of this issue now?