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Yes, honest people will continue to pay for apps as they always have. Then, in two or three years, when MS decides that they don't want to play with the Marketplace anymore, those same honest people will lost their apps (and their money) when MS closes down their servers. (Skeptical? Just ask people who bought DRM-laden WMA music files from MS and then lost their investment when MS pulled out of the market.)
I'm not worried about developers because a well-designed and fairly-priced application will sell well. I'm worried about the consumers. It's really very simple. It may take two years, or it may take five, but when you buy intellectual property that requires someone else's servers to install and/or run, you will lose your investment eventually.
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