There is one point that I don't understand. The pseudo file /proc/cpuinfo is provided by linux kernel, and this one halts if the CPU does not match the flags required. So, where is the bug: in linux kernel, in Ubuntu kernel installer/updater?
This script misses a CPU check, it forces PAE to 'exist' on every CPUs not supporting it. This way, it's free PAE for everyone, even for non Intel achitecture based CPU (Arm, PowerPC...).