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After carefully dissecting the sentence, I can now see how it could be interpreted otherwise, as the word "when" can be used either as a preposition (as it was intended in this sentence) or as a subordinating conjuction which would then require a full clause, infering that the verb "is damaging" then be part of the adverb clause, leaving no verb for the adjective clause.
Hell, they probably have the technology to do so without the dude even being able to make a call other than 911.
I may be mistaken, but I have been led to believe that all cell phones (possibly mandated by law) were required the ability to make emergency calls to 911 regardless of service status. I know with all the phones I've had, with the SIM card removed (no SIM, no authentication, no service, no calls) allows emergency calls to 911 (in fact, will ignore all key presses other than the sequence 9,1,1, TALK).
First, you say that C# is a closed and proprietary language. You also say there is no spec for the C# language. While Microsoft's C# compiler itself may be closed source and proprietary software, it is an open standard per ECMA. You also state that developers won't be porting the language to new systems, yet I can count at least two compilers (both open source) available for non Microsoft systems.
You then ask if it can be used to create an operating system, if it can program set top boxes, or be used in embedded systems. Well, yes (Singularity), eventually (it has been noted that one use of Singularity would be set top boxes) and yes (.NET Compact Framework or Embedded Linux with Mono).
You may state these solutions are inefficient or inadequate, and I won't argue against that. However, to say they don't exist at all is not true.