Document http://www.ti.com/lit/an/sloa132/sloa132.pdf , page 3, uncertain information? Please see figure 3 of the document.
It might be I just do not understand rather than there is a mistake; Then I'd like to have an explanation I could understand :)
Details:
1.) I2C has no problem with repeated start, which is in conflict with stated information "INCOMPATIBLE because of Re-START".
2.) The problem is in fact in the "BYTE CT" field which would not include byte count but rather DATA0. Master should count on it; Such information is missing in the figure 3.
3.) SMBus master would not respond to the latest data by ACK, rather by NACK.
4.) If one wants to send "SUBADDRESS" to the device, previous "SLAVE ADDRESS" just have to be "W" (0). Otherwise device will send DATA0 with next clock which would be in conflict with the "SUBADDRESS" being sent by the master.
5.) Once "SLAVE ADDRESS" is sent like "W" (0), pure I2C device would be in write mode and would just never send anything until new Start + SUBADDRESS "R".