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To be fair to Google, they've said many times that they don't believe the earlier versions of Android are fit for tablets, and that since the OS is designed for phones with a certain minimum set of capabilities they'd rather restrict the market to those phones for now. I'd expect this to change once the new v3 merges with the phone versions of Android - rumoured to be happening later this year.
However, as noted above, Google has got no problem with other vendors and sites providing apps for sideloading onto your device.
Graham
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