I know that. I was asking the OP if that was what he meant. You don't need a bootable disc, either. You can do a clean install or reinstall with an internet connection and you iTunes id...for free.
I dunno about you guys, but yes... Using Internet connection these days seem like the way things are headed, but instill prefer local install anyway, USB preferred as DVD too slow.
Obviously, this may not always hold true, but the number of posts I've seen which people have not made a backup, in some way.
Well..... My only saying to that is....... You pay the price for not keeping a backup. By the same token, I also blame apple, as this is "unsupported", otherwise it would be in their website. And they say "Oh, and by the way, we sell a bootable USB key for $80" Are you kidding me? I'd rather use another Mac to download Lion, (if available), get a USB key from a your local retail outlet and you've only spend $10 tops.
Naturally, if the dmg image stayed around on the system AFTER install, we wouldn't have these problems. (or not as many).
I haven't tried it, but after you download it once and make the bootable disk, can't you install from that? If it does, then you could just put in the second disk that came with your Mac - the one with the apps - and install those.
I have to update my iMac - already did my MBP - and I'll try it that way just to see if it does work.