[xsmasher]

Apple could allow the phone to be set up in one of two "modes" - one that allows any app to be installed from any source but does not allow connections to iTunes, app store, Game Center, notifications, subscriptions, or any of Apple's other services; and the normal mode that functions like a regular iPhone does now.

Viola, the user has a "choice" of open/crippled or locked/functional modes; they're meeting the letter of the law even if the "open" mode is practically useless.

[rbarooah]

Actually that would be a pretty interesting mode. Presumably alternative app stores would spring up - Cydia would probably be repurposed immediately. As long as there's a clear division between 'closed' and 'open' modes so that people who want the closed model still get the benefits, this would be a pretty interesting experiment.