The form controller is put in the $scope
with the given name. So in your case, the name of the model collides with the name of the form and strange things happen; this is a timebomb, a bug that will haunt you sometime in the future.
I like giving forms a distinct name; if you try <form name="user2form">
in your fiddle, it will work. (I always suffix the form name with form
for this reason.)