Yep. Since Installer is not set to look for Snow Leopard i see this just as standard safe guard Apple has put in. Nothing else.
You can install either version (download or USB key) to any supported Mac running any Mac OS X (Tiger, Leopard or Snow Leopard).
Not exactly. You can install Lion from the App Store on a volume with no installed system, or with Snow Leopard or Lion already installed. You cannot install the App Store edition on a volume which has Leopard installed (and I assume the same restriction applies to Tiger or earlier). The installer won't let you pick that volume as a target.
We won't know whether this technical restriction also applies to the USB thumb drive edition until someone has tried. (I expect it won't work.)
The licence agreement for Lion says that the App Store edition requires Snow Leopard, therefore if you don't own Snow Leopard you are violating the licence agreement. The USB thumb drive edition is not mentioned in that document.
The Apple Store page for the USB thumb drive edition quotes a portion of the licence agreement:
"OS X Lion Software License Agreement
The OS X Lion Software License Agreement allows you to install and use the software for your personal, non-commercial use on all the Macs you own or control that are running Mac OS X Snow Leopard or Snow Leopard Server (a Mac Computer). Commercial enterprises or educational institutions can install and use one copy of the software for use either a) by a single individual on each Mac Computer that the enterprise or educational institution owns or controls, or b) by multiple individuals on a single shared Mac Computer that the enterprise or educational institution owns or controls (for example, in a resource center or library). You can also use the software in accordance with the terms of a volume or maintenance license (purchased separately). Full license terms can be found at http://www.apple.com/legal/sla/."
Based on that, the USB thumb drive edition has the same licence conditions as the App Store edition, which means that Apple expects Leopard and Tiger users to buy Snow Leopard in addition to Lion (either on the USB thumb drive or from the App Store) in order to comply with the licence.
Therefore the $69 price is partly the $29 licence cost of Lion, plus cost for the physical hardware (USB thumb drive), plus distribution expenses, plus a small profit margin. Apple's intention is to encourage most people to get Lion from the App Store.
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The MacRumors article omits an important piece of information that 9to5mac.com, Thisismynext.com and macstories.net all reported (originally from
9to5mac.com)
If you install Lion with this USB drive, you will be unable to use the recovery partition. I guess it just doesn't create one during the install. Of course, the likelihood is that you have crappy internet and so you would always want to use the USB stick. It seems that if you want a physical backup of the installer, it's best to make your own.
The Apple Store description says you can't use the Lion Recovery to reinstall Lion, i.e. it won't be able to do the 3.7 GB download from the App Store, presumably because you didn't buy Lion from the App Store, and Lion Recovery can only do the re-download if your Apple ID had already bought Lion from the App Store.
The actual Lion Recovery partition is almost certainly still there, so you will have Disk Utility, Safari, Time Machine restore and the other utilities without having to use the USB thumb drive. You will need the USB thumb drive to reinstall Lion from scratch.
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So does this mean that I could use this on as many computers as I want? If so then thats much cheaper than the download ppl... lol somebody get back to me with that?
Both the App Store and USB thumb drive editions of Lion are allowed to be installed on all compatible Macs you own or control, for personal use. (Commercial use depends on how many people are using the computers in question.)
The licence agreement quote in grey at the bottom of the Apple Store page for the USB thumb drive edition applies to the App Store edition as well. The full licence agreement is
here.