> "People can just sideload the OS" is not a feasible answer here.
Well, it's not feasible as long as bootloaders remain encrypted/non-unlockable. That's the problem with restricting the software that can run on hardware after the user has purchased the hardware and owns it.
People will just buy different Android phones from someone else.
We've already been through this. AT&T (uniquely among US carriers, I believe) blocked non-Market applications on all of their devices. The success of the Amazon Appstore forced them to change that policy.
