I struggled about whether to cover this story or not, but since the information is already out everywhere I thought I might as well provide a forum for discussion here.
The app has not been released, but will likely take much less than 6 hours to recreate.
While the app may appear to be a disaster for developers, the truth is that any iPhone app can be downloaded for free from many repositories. This has not stopped the influx of developers and some of them becoming very rich.
In the end fighting against possibility of piracy is an exercise in futility, but Microsoft has worked hard at making Marketplace easy to use, and apps are so cheap in the end for most it will likely not be worth the bother.
Still, I would condemn the creation of this app, if only for giving developers pause when thinking about creating apps for this new platform.
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