2 year validity of Tier 1-- implications for settlement?

I was just approved for Tier 1 general (have been on post study work visa for the past 2 years) and just received my residence permit today. I was surprised to find that it's only valid for 2 years, as I didn't realise that all of the recent immigration changes included decreasing the number of years it would be valid.

Aside from the obvious point that this is supremely frustrating, what does this mean for gaining enough years for settlement? I know it used to be that under Tier 1 you would get 3 years, renew for a further 2, and then could apply for settlement. Does this mean now that I have to apply for Tier 1 another further 2 times?? Or have they removed the right to settlement under Tier 1 altogether?

Initial leave of 2 years + 3 years at the time of extension = 5 years total
OR
Initial leave of 3 years + 2 years at the time of extension = 5 years total

Did you read the policy guidance before submitting the application (e.g. - para 44, as given in the current document)?


regards

OH okay. I did read the policy guidance, but it all changed so many times before I actually applied I guess I missed that or misread it.

Thanks!