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After following through a bunch of blog posts and articles, now it is clear that Developers with unlocked Android G1, or Android Developer Device, will not be able to access copy protected Apps on Android Market place.
The reason is that flawed method of Android's copy protection method that get unlocked (developers have root access to the Android G1) and perhaps lead to pirating of copyrighted applications. The Phandroid explains the process very nicely, here.
There is also a talk of Android riot, a developer revolt being planed by some developers to protest the drastic steps taken by Google.
If you do not like to deal with technical side of it, Macworld has a nice article on the issue.
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