I agree with you, and as a would-be Android dev and ADP owner I want them to succeed too. They had to do something, knowing it would be broken. They could have done a little bit more than install into a private dir. But it wouldn't have taken any longer than it has to break it, and the results would be pretty identical from a user's perspective. I think the Pre is DOA though
From a technical perspective this comes about from the app DRM just being about protected folders which developers can access, Google needs a more solid solution.
There is no more solid solution. ADP phones got root, and the OS is fully open source (no HDMI-like "protected path").
End of story.
What about folded optics? Minolta had a camera like this with a 45 degree mirror behind the lens and the sensor down one side a few years ago. Gives longer focal length in a slim body. Don't know if any of the camphone companies are doing this though, there's probably not enough empty space in the case.
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