I think it's great they're going to offer a physical option - the part I cannot understand is how it apparently asks for a $40 markup? Sure I understand production and distribution costs, but they managed to ship Snow Leopard on a disc for only $29 a couple years ago, I wouldn't imagine a ~4GB thumb drive to cause that much of a price increase.
Why is it $40 more? Because Apple doesn't want you to buy it on a thumb drive. They want everyone to look at the Mac Apple Store, so they see all the apps there and start buying them, which puts money into developers' pockets, so they write more software, which makes people buy more Macs.
I've not read anywhere that buying the USB Stick will enable you leap straight from Leopard to Lion. Hope there's more info to come on this because so far everything i've read suggests Snow Leopard is required to be able to install Lion and not just because of the App Store.
The license allows to install Lion on any Macintosh that you control or own, and that has Snow Leopard installed.
Forgive my ignorance on this but -
I have 10.6.6 installed, let's say I buy & download Lion. At some point my hard drive fails, and I need to re-install. Does it require 10.6 to be installed for me to reinstall Lion, or is it a case of I should have 10.6 installed, but it's not enforced?
If it's the former, I'd rather not have to keep a backup of Lion around, AND my Snow Leopard DVD.
1. You should really, really, really have an external hard drive for Time Machine backups.
2. On that external hard drive, create a 15 GB partition. Download Lion. Copy the installer onto the partition (that's important because the installer deletes itself after installing, and you don't want to download it again). Then you install Lion on the 15 GB partition. Check that you can boot from it (hold the option key will rebooting).
3. Copy the installer back from the 15 GB partition, then install it on your computer.
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