Why is this even a surprise? Why is everyone saying it's an open vs close issue? The TOS clearly states that apps that utilize high bandwidth is a violation. Google hasn't enforced this strongly but it is against their TOS. It's the same as in Google banning porn-related material. This is not anything special. Of course Gruber jumps on the course saying it's against their open nature, but please, at least most users…
Which TOS are you referring to? The Android Marketplace TOS? Could you please point to the section of the TOS that mentions this? I find it very strange that the marketplace would be concerned about an application's bandwidth usage.
Using the network's bandwidth to tether (since you didn't pay extra for it or is not authorized to) is deemed as having an adverse impact on the carrier's network.