If bash is invoked with the name sh, it tries to mimic the
          startup behavior of historical versions of sh  as  closely
          as  possible,  while  conforming  to the POSIX standard as
          well.

   So, if POSIX says that the example above should be

   $ echo hello {there,world}
   hello {there,world}

   then this is a bug in bash, IMHO. Can somebody check bash for other
   non-POSIX features is has when called as `sh' and file bug reports for
   them?

`startup behavior' is not the same as `behavior while bash is
running.'  `startup behavior' just means what dotfiles get run at bash
startup time.

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