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Forget the tethering police, the rooting police are here, led by Google

I wouldn't mind not being rooted so much if it weren't for the fact that the backup programs need root access to do a full backup.

That said, it's my freaking phone and I should be able to do what I want with it.

You will still be able to do what you want with your device with the understanding that you may not be able to use some of the applications that will be released under DRM licenses. DRM is the issue, not Google or Android as an open source development platform. My two cents!
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This article talks about the Netflix app which is pointless in this discussion. One of the first supported phones was the Nexus S, which is also one of the most easily rootable phones. And yes, mine is rooted and running a custom ROM (CM7) and Netflix works just fine on my phone, and has since the day the app was released on the market.
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"It’s disturbing enough that content providers are able to push the DRM agenda down to the handset level, and especially so that Google itself has fallen victim to the fear."

Unfortunately if Google wants the content, they have to bow down to Hollywood's terms. Obviously Hollywood is terrified that rooted devices will be used for piracy.
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Why would anyone want to rent a movie from Google to begin with. You can only watch it once and you have a time limit oh and only on your android device. Or you can go to your local red box and rent the DVD for $1 watch it all you want for a day and return it.

Didn't someone already try Google's half baked idea...oh yeah DIVX and circuit city

The same reason I occasionally rent a movie on demand. It is not on Netflix and I don't feel like driving to a Redbox. Sometimes it is worth the extra couple bucks.

Also another reason is the same reason I rent on my iPad. If I am flying and I want to watch a movie it is really easy to rent on iTunes or Google (if I had a Xoom) so that I can watch it in flight if there isn't wifi
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