I'm using Mathematica 9, so tell me if this is fixed in 10.
Steps to reproduce:
Enter and Evaluate:
Assuming[Element[M , Matrices[{2, 2}]] && Element[Z , Matrices[{2, 2}] ], Simplify[M == M Z]]
False
This returns "False". However, this is not correct. Consider:
Assuming[Element[M , Matrices[{2, 2}]] && Element[Z , Matrices[{2, 2}] ], Simplify[M == M Z /. Z -> {{1, 1}, {1, 1}}]]
True
Obviously, {{1,1},{1,1}} is n element of the domain, which Mathematica knows:
Element[{{1,1},{1,1}}, Matrices[{2,2}]