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I'm guessing application developers could pick because many of them are paranoid with piracy.

Since Android is much more open than Android once you have an application file you can easily share it.

So since the file system is open, couldn't you still trivially get to the files and move them to the SD card or FTP them to a friend? Is this really much of a barrier?

Unless you have root on your phone (you don't on most phones unless you exploit a security hole) then you can't access files owned by applications.

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