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Google Android Dev Phone users are totally unrestricted with what they can do with their phones. Android Market apps are closed source, so the apps can be sold for profit.

Regular Android users have no problem with this - They buy the apps and use them.

But if a dev wanted to buy an app they wrote themselves, Android Market frowns on this.
After all, devs with access to their phone's root directory could buy other peoples apps also and pirate them.

so... I guess that leaves open source apps on an open platform phone?

you can become a dev user just by registering.