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I think it comes down to two things:

* Open software without DRM that relies on the user's gratuity. The user ends up almost tipping the developer for creating a good app.
The problem is it's impossible to fund development in this way and the bigger apps aren't a labour of love but a business model.
It won't be long before the pirated versions will have the iAds removed too.

* Closed DRM which I believe the Apple will implement within their own designed silicon in an attempt to lock down the firmware and application/content (think iPad secured streamed movies or a new Apple TV with iPhoneOS that only runs via encrypted HDMI movie content).
Apple is attempting to use it's Cloud and closed ecosystem protected right up to the screen/touch/keyboard/sound itself. Soon the image on your display will be rendered in the cloud, the key presses and touches will be sent to the cloud for processing and you'll not have access to the application or data itself (akin to Citrix virtualisation - Apple's/Google's next aquisition).


The problem is the software, hence the value to the user, can be manipulated to remove any DRM. The only way to protect is to have a hosted service and then only provide non-reusable information to the user on a need-to-use basis.
 
Apple is attempting to use it's Cloud and closed ecosystem protected right up to the screen/touch/keyboard/sound itself. Soon the image on your display will be rendered in the cloud, the key presses and touches will be sent to the cloud for processing and you'll not have access to the application or data itself (akin to Citrix virtualisation - Apple's/Google's next aquisition).
What gives you this impression? Until the internet, especially WiFi / cellular, is much higher speed and reliable, I don't see key presses, etc. being sent to the cloud for processing happening at all. And the fact that Apple is encouraging native app development (200,000 and counting) versus web apps, I think shows that Apple is not attempting to move everything to the cloud.
 
What gives you this impression? Until the internet, especially WiFi / cellular, is much higher speed and reliable, I don't see key presses, etc. being sent to the cloud for processing happening at all. And the fact that Apple is encouraging native app development (200,000 and counting) versus web apps, I think shows that Apple is not attempting to move everything to the cloud.

Agreed, 10-15 years. That is the direction they're travelling and HMDI cloud-to-screen will be first.

Samsung are at the same game without content (LAN into the TV with media services). Only Google/MS/Apple have the required independence and size to bring it to the market.
 
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