This isn't a bug. See Section 4.5.5 of the Haskell Report,
http://haskell.org/onlinereport/decls.html
in the second bullet under the sub-heading "Motivation". Your (bi, las)
binding is essentially the same as the (n,s) binding in that bullet.
Thanks for your analysis. By changing "let" to "case" I could make all my sources compile (with and without -fno-monomorphism-restriction). (So there's no hurry/need for a -fmonomorphism-restriction flag.)
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