What bugs me about this is, wireless tethering isn't against any rules. I can have my phone connected to wifi, and I can wirelessly tether my laptop to it and not be voiding my data plan or contract or anything.
In today's world, sure, there's almost never a reason to do this-- if your computer can wirelessly connect to your phone, it can connect to the wifi your phone's using. But it's still a legitimate use for it. And I CAN think of one or two rare examples where I'd want to use this (say I'm in a spotty wifi connection, I can put my phone up high on a dresser to get a better signal and connect my computer to my phone). Or maybe your phone has saved the password to a wifi hotspot, but your computer hasn't, and you don't know the password.
edit: so I think them removing the apps from the market sucks, but as I've stated in other posts, I still support their right to do it-- their market, they choose what goes on it. But still, pretty lame Google.