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1. You can install whatever you want on your own phone if you first enable developer mode. It's very easy to do.. See the homebrew app scene here: http://www.precentral.net/homebrew-apps

2. Palm hasn't tried to shut down the homebrew scene at all. Actually they have been reaching out to developers of those apps and offering to let them host their apps in the official app store too.

3. Most people are not going to go through the trouble of hacking their phone just to install homebrew apps. They expect their phone to act like a phone, and they don't want to have to buy a virus scanner just to protect their phone from threats. For those users, I think the kid gloves are reasonable.

4. I believe Apple takes a 30% cut from iPhone app sales too.