The last clarification I received from Justin at Google in which he said

"What is required is that if you provide an "upsell" option to a paid
version, this version must be available, and available solely through
the Android Market. "

(full mail at 
http://groups.google.com/group/android-discuss/msg/57c8410cbff50bbf)

Al.

Jon Colverson wrote:
> On Feb 18, 12:32 pm, Al Sutton <[email protected]> wrote:
>   
>> Or, if Google want to encourage people to agree to their terms, they
>> could clarify them.
>>     
>
> Which part of the agreement makes you doubt that developers are also
> allowed to use alternative stores?
>
> --
> Jon
>
> >
>   


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