That is correct. Rooted users can copy whatever they want. I believe some of the popular GUI file management tools like Astro won't allow it even if you're rooted but that's only a minor stumbling point. You can do it via a shell or use one of the utilities that does it automatically.
Sure, just like most other platforms. Pirating apps on the iPhone is trivial as well.
His return rate seems high; mine is less than 10%. No idea what my piracy rate is, and I don't really care. Although I would if my app required server resources that I was paying for.
