Update within a deleted tree no longer raises a tree-conflict

A file with a change:

svnadmin create repo
svn co file://`pwd`/repo wc
svn mkdir --parents wc/A/B
echo foo > wc/A/B/f
svn add wc/A/B/f
svn ci -mm wc
echo bar > wc/A/B/f
svn ci -mm wc

Start with the old, delete an ancestor, update the file:

svn up -r1 wc
svn rm wc/A
svn up wc/A/B/f

With 1.7 the update raises a tree-conflict because the text of a deleted
file is changing:

$ svn1.7 up wc/A/B/f
Updating 'wc/A/B/f':
   C wc/A/B/f
At revision 2.
Summary of conflicts:
  Tree conflicts: 1

With trunk the update gives:

$ svn up wc/A/B/f
Updating 'wc/A/B/f':
   U wc/A/B/f
   U wc/A/B
Updated to revision 2.

We have a spurious notification for A/B (it's still at revision 1) and
no tree-conflict.

Is the absence of a tree-conflict the correct behaviour? The user did
explicitly request the update so perhaps we don't need it. If the
absence is correct what if the update target was A/B? Would we need a
tree-conflict on A/B/f in that case?

-- 
Certified & Supported Apache Subversion Downloads:
http://www.wandisco.com/subversion/download