That contraction idea was extremely silly. It's one of the easiest things to do. There are just so many combinations of words that can be contracted, and since he knows grammar, he knows where to put the contractions. Was that really the best they could come up with? Is he REALLY incapable of using "ISN'T" instead of "IS NOT"? Is he really that stupid? I wouldn't trust such a machine with anything.
Yes, it is very silly. Basically, contractions are Data's kryptonite.