Merely a preference.
The new CDF instruction on burial and cremation, which was released yesterday, is being hailed in the Catholic media as a reaffirmation of the Church's "strong preference" for burial. One finds headlines that speak of the document as putting "restrictions" on cremation, or as instituting "strict conditions" upon it. Unfortunately, after a careful reading of the document and considering the pervasive culture of permissions and exceptions in the Church, we are compelled to come to different conclusions.
To put the new instruction in context, we need to revisit the first document by which the Holy See relaxed the traditional ban on cremation on a global scale: the instruction Piam et constantem, issued by the Holy Office in 1963 and published in L' Osservatore Romano and Acta Apostolicae Sedis the following year. (An English translation of this document can be found here.) Written with the customary brevity and clarity of the old Holy Office, it speaks of the various temporal reasons that compelled the Holy Office to "relax somewhat the prescriptions of canon law touching on cremation". Henceforth, cremation was permitted, as long as it was not chosen due to "anti-Christian motives". However, it remained officially discouraged (even if no longer forbidden). This was made abundantly clear in the first and fourth articles of the instruction:
All necessary measures must be taken to preserve the practice of reverently burying the faithful departed. Accordingly, through proper instruction and persuasion Ordinaries are to ensure that the faithful refrain from cremation and not discontinue the practice of burial except when forced to do so by necessity. For the Church has always maintained the practice of burial and consecrated it through liturgical rites.
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The devout attitude of the faithful toward the ecclesiastical tradition must be kept from being harmed and the Church's adverse attitude toward cremation must be clearly evident. Therefore the rites of ecclesiastical burial and the ensuing suffrages may never be carried out at the place of cremation itself, not even simply to accompany the body as it is being brought there.

