Issue with parameter and command substitution in case statement

[John]

Configuration Information [Automatically generated, do not change]:
Machine: i686
OS: linux-gnu
Compiler: i686-pc-linux-gnu-gcc
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i686' 
-DCONF_OSTYPE='linux-gnu' -DCONF_MACHTYPE='i686-pc-linux-gnu' 
-DCONF_VENDOR='pc' -DLOCALEDIR='/usr/share/locale' -DPACKAGE='bash' -DSHELL 
-DHAVE_CONFIG_H   -I.  -I. -I./include -I./lib   -msse3 -O2 -march=athlon64 
-pipe
uname output: Linux strythbox 2.6.24.3 #2 Thu Mar 13 10:21:15 EDT 2008 i686 AMD 
Athlon(tm) 64 Processor 3800+ AuthenticAMD GNU/Linux
Machine Type: i686-pc-linux-gnu

Bash Version: 3.2
Patch Level: 39
Release Status: release

Description:
        the gnu bash manual indicates:
"The syntax of the case command is:
   case word in [ [(] pattern [| pattern]...) command-list ;;]... esac"
        and further that:
"Each pattern undergoes tilde expansion, parameter expansion, command 
substitution, and arithmetic expansion."

        While command substitution and parameter expansion occur, the resulting 
strings are not parsed in a fashion consistent with the normal behavior.

        Take, for example, the string "1|2".  when used in the form case 2 in \ 
1|2) ... the function execute_case_command, in the strmatch line.  This line is 
executed twice, once being a strmatch (2,1) and the other being strmatch (2,2). 
 Obviously the 2,2 is the match.

        On the other hand, when a variable VAR='1|2' is used (case 2 in $var 
... ) the comparison performed is strmatch (2,1|2) which fails.  1|2 is never 
broken into its components.
Repeat-By:

#! /bin/bash

VAR='1|2'
echo test is 'case 2 in $VAR=1|2'
case 2 in
  $VAR) echo good ;;
  *) echo fail ;;
esac

echo
echo test is 'case 2 in 1|2'
case 2 in
  1|2) echo good ;;
  *) echo fail ;;
esac

echo
VAR='2'
echo test is 'case 2 in $VAR=2'
case 2 in
  $VAR) echo good ;;
  *) echo fail ;;
esac

echo
echo test is 'case 2 in 2'
case 2 in
  2) echo good ;;
  *) echo fail ;;
esac

echo
echo test is "case 2 in \`echo '1|2'\`"
case 2 in
  `echo '1|2'`) echo good ;;
  *) echo fail ;;
esac

echo
echo test is 'case 2 in 1|2'
case 2 in
  1|2) echo good ;;
  *) echo fail ;;
esac