So all the rehtoric over "Android is open because you can install whatever you want from anywhere" is just BS?
Is that what I'm missing? I'd thought that statement was true which is where my confusion is coming from. If THAT part is the lie than everything about this particular thread makes sense again.
No, that's not quite right... hold on while I have a go at this:
Android is open as a platform. Anyone can obtain the source code and do what they like with it. However Android does NOT include certain apps as standard, the most obvious of which is the Market. Google authorises devices to install the Market application on a case-by-case basis (seemingly) and can impose whatever conditions they like. A couple of examples of this would be insisting that manufacturers use Google's location services rather than Skyhook and that a device must have 3G access not just Wi-Fi. But they could demand that a device be painted purple and yellow if they wanted to.
Apps installed via the Market are subject to Google's terms and conditions. While a lot looser than, say, Apple's equivalent documents there are certain things that will cause an app to be pulled but there is, AFAIK, no review process when an app is submitted. In order to allow Google to manage rouge apps (or ones that look at 'em funny) they have the tools and rights to pull apps from the store and do remote wipes.
However as Android IS open there's nothing to stop other companies launching their own App store for the OS. Apps can be installed from multiple sources (much as, say, a Jalibroken iPhone uses app repositories) which may offer more or less control than Google's own market. In addition Apps can be installed without going through any App store by getting an apk file onto the phone and installing manually. You do have to confirm multiple times you want to install an app in this manner however.
Phew, I think that covers it, hope it helps.