This will lead to Apple working really fucking hard at trying to stop the iPhone Dev Team, instead of just lazily patching up bugs and exploits as they have been so far. Now there is a very, very good reason for them to patch it up real hard.

That means no more Cydia, no more NES emulators, no more iPhone Terminal.app. Good work.

What Bjorn and Nick said. There's not much difference between the DRM on AppStore apps and the serial key check in your normal desktop app, with the great exception that AppStore apps are a hell of a lot easier to manage for the end-user (that is, not at all) and completely hassle-free for developers. What is it that you feel you have accomplished here? Getting apps for free? Well, that's one good way to tell the platform's community of developers you don't want their work.

The one thing that sucks about the iPhone is the hard restriction on what you can do on the device, and that's already been solved as good as it can outside Apple with Cydia.

I can understand rationalizing downloading expensive software because you can't afford it, new tv shows because they won't be out in your country for half a year, music before there were any good online stores. But this? C'mon. $5? Or even $1? What's even the point? All you'd do by using this app is to ruin the platform, and then there won't be any more apps to crack.

[Update] Okay, so it sucks that there are no demos, and not even videos. I had an idea a while back, and I will file a bug with Apple about it, that the App Store should require every developer to bundle a youtube video with every app, that should be playable in-store. It's really up to each developer to provide a demo or restricted version, though.