Yeah I don't think I'll be buying Lion. I have little doubt that Lion +1 or +2 you won't be able to install from DMGs. Only the app store or physical media.
On a related note, the main newspaper in China complained that the iPad is too locked down, they even complained that it's impossible to put pirated software or movies on it.
In many Eastern countries like Russia or China, people aren't used to pay for such things, b/c in the past, they have been unable to afford them (and many probably still are).
They're used to draw on unlimited resources!
Once I met a developer from Eastern Europe who was completely surprised that people here don't just throw together any free or pirated source code that they can find when developing software for a company. lol
At least those countries are more prone to use GNU/Linux and other open-source software ... why pirate it when it's free, right?
Yeah Piracy is rampant over in Asia and Russia (Eurasia?). It's just their way of life. Look at how many products they blatantly copy then put on the market. As for the iPad I've had no problems converting a couple of my DVD rips and importing them into iTunes to transfer to my iTouch.