While the freedom to develop and publish an app outside the Android Market will result in porn apps like "MiKandi", it's also an avenue for a website to publish their own app download links for local users.
Instead of saying, get phone A and go to store B to download the app, the thinking is similar to the desktop market where you can download anything compatible with your operating system.
This opens the ability (for say a news website) to offer a link for an app to access their local content right from the website for readers who are using a variety of handsets, devices and wireless carriers that are running the Android operating system.
The Android Market, in this case becomes secondary, but a platform where an app and it's content can be marketed globally.
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