Disabling SharePoint Designer Workflows in SharePoint 2010

With SharePoint 2010 there is a new feature where we can disable the use of SharePoint designer workflows on the SharePoint Sites inside a Web Application. This feature prevents the use of any declartive workflows in the Web Application. This is done at the Web Application level so all the site collections inside that web application will not be able to create or use the workflows.
To disable the declarative workflows go to Central Administration site and select the Web Application. under General Setting there is a menu item for controlling the workflow for the Web Application:

Once you click on this following screen will be displayed:

Here we can disable the workflow. Once we do this, no workflows can be created in the SharePoint Site collections using the SharePoint Designer. Also we can not use the predefined workflows.

If we try to create a new workflow using SPD following error will be displayed stating "User-Defined Workflows have been disabled by the SharePoint Administrator. User Defined workflows will be unable to run."

Also once these workflows are disabled many predefined workflows are not available to be used in the site collections. Only Disposition and Three State Workflows are available to be used.