Google Remotely Deletes a Pair of Apps from Android Phones
engadget.com
engadget.com
I have a hard time feeling outraged about this; it seems like exactly the kind of reason why both Apple and Google added the ability to remotely remove applications to their marketplaces.
And, note that this kill-switch only applies to Market-supplied applications; if you install an APK yourself manually, they can't remove it. (In fact, installing or removing an app via the Market actually uses the intents for installing and removing applications that Google used here, rather than installing the APK directly.)
"Believe me, it's for your own protection."