The pair showed a video demonstration of phones from a wide range of manufacturers...

Boy it would be nice to actually see said video...

Apart from the commission, this sounds like Freshmeat, Tucows, or Sourceforge.

They probably make money off of ad revenue

Forgive me if I'm restating something someone already said (I seriously can't read every comment here). I hate the idea of forcing Google to follow in Apple's footsteps. I believe in free market solutions. Locking down the market may discourage developers. In the Windows market (where malware is rampant), this problem has already been solved. Most people don't download something unless it has been recommended by someone else (i.e. credible website, friend, colleague). If you aren't following someone's recommendation, then you knowingly accept the risk of being infected.

Granted, the majority of people using Android Market have yet to adopt this same ideology. It's only a matter of time before third-party companies play the role of Apple, investigating applications and applying their "seal of approval." Surly Google will allow developers to include these seals in their market descriptions if they've earned them. A solution like this allows the free market to continue, meanwhile giving credit to legitimate applications, and outing the "bad apps." People will naturally respect these third-party authorities.

I believe Google is doing the right thing. I think they should encourage what I've prescribed above.

My money is on not.

No, but I'm sure someone has described an innovation as "perfectly cromulent."