    Before uploading a new version of my project on Hackage, I decided to future-proof it against GHC 7.0. I ran into several compile errors caused by the changes in let generalization, but these were easy to fix by adding extra type annotations. But then I ran into another problem that I can't fix so easily. Here is its trimmed-down reproduction:

> {-# LANGUAGE RankNTypes #-}
>
> module Test where
>
> data Component c = Component {with :: c}
>
> pair1 :: (Bool -> c1 -> c2 -> c3) -> Component c1 -> Component c2 -> Component c3
> pair1 combinator (Component c1) (Component c2) = Component (combinator True c1 c2)
>
> type PairBinder m = forall x y r. (x -> y -> m r) -> m x -> m y -> m r
>
> pair2 :: Monad m => (PairBinder m -> c1 -> c2 -> c3) -> Component c1 -> Component c2 -> Component c3
> pair2 combinator = pair1 (combinator . chooseBinder)
>
> chooseBinder :: Monad m => Bool -> PairBinder m
> chooseBinder right = if right then rightBinder else leftBinder
>
> leftBinder :: Monad m => PairBinder m
> leftBinder f mx my = do {x <- mx; y <- my; f x y}
>
> rightBinder :: Monad m => PairBinder m
> rightBinder f mx my = do {y <- my; x <- mx; f x y}

   The general idea here, if you're intrigued, is that pair1 belongs to a generic module that packages things it knows nothing about into Components. The remaining definitions belong to a client of the generic module, and pair2 is a specialization of pair1 to components that have something to do with monads.

   Now this little test compiles fine with GHC 6.12.1, but GHC 7.0.0.20101029 reports the following error in the pair2 definition:

TestForall.lhs:13:42:
    Couldn't match expected type `forall x y r.
                                  (x -> y -> m r) -> m x -> m y -> m r'
                with actual type `(x -> y -> m1 r) -> m1 x -> m1 y -> m1 r'
    Expected type: Bool -> PairBinder m
      Actual type: Bool -> (x -> y -> m1 r) -> m1 x -> m1 y -> m1 r
    In the second argument of `(.)', namely `chooseBinder'
    In the first argument of `pair1', namely
      `(combinator . chooseBinder)'

    I've tried adding extra type annotations without making any progress. At this point I'm beginning to suspect I ran into a bug in GHC 7.0, but I can't find it in GHC Trac; the only ticket that looks similar is #4347, but that one works for me. Is this a bug? If not, how do I make my code compile?