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Never allow them to update their email on a form. Marketo is set up to do just what it is doing. You could have a field for Email Address2, but definitely they should not be able to update their email address or you will always come away with two different records.
Marketo is going to set this up as a new lead because of the new email address -- often times people forward emails and those get clicked through, so there isn't a guarantee that it is the same person filling out that form.
There is a way around where you can capture the new email ID, without changing the cookie. Needs some custom coding but will work perfectly. Are you currently using any application for duplicate emails like Ringlead?drop a line at email@example.com, if you would like to discuss