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Wow. I've been trying to justify buying a dev G1 for a while now and this -seriously- isn't helping.
Another case study for security by obscurity. A crypto-DRM system would not necessarily make a developer's life easier, and would probably be of limited value (and more CPU expense).

As a potential dev, I applauded the unlocked dev phone offer. But being unable to download paid apps dramatically reduces the utility especially for a small-shop, not yet Android committed dev. If hidden folders was the "launch-ready" store solution, it may be a while before this is corrected.