The short story is that Cydia—the other non-official iPhone app installer—won the battle against Installer. Installer was the first pretty application installer to appear for the iPhone, but Cydia became more popular over the last few months. Ripdev—which was involved in the project since version 3—says that the Installer repositories will be available until July 1st, 2009.

But fear not, my young apprentices, because we still have Cydia and Icy, which is an iPhone app installer that plugs into Cydia directories—made by Ripdev. [Ripdev—Thanks John Gregorio]

The process works by installing an app onto your iPhone that's not quite jailbreaking, but is enough to allow those not-quite-official applications to get on there. If you gave us the choice of paying $7 or running jailbreak on our phones—which is fairly easy as long as you have some tech knowledge—we'd choose real jailbreak. [Ripdev via 9 to 5 Mac]

Developers can’t touch or enhance iTunes or iPod functionality in any way, shape or form—they can’t even access your music directory, meaning you better like the way the iPod button works just the way it is. Don't expect any apps to use your wonderfully curated music library either.

Casualties: Instinctiv Shuffle, a smart shuffle application that learns your skipping behavior to figure what you actually wanna hear next. Tap Tap Revolution became the watered-down Tap Tap Revenge.

No processes can run in the background—apps have to completely quit when exited, completely contained in their little sandbox.

Casualties: IM is a popular example, but Apple’s upcoming push notifications will probably make them a moot rallying point. It also means that third-party copy-and-paste solutions won’t work, since you can’t move the text to another application. Also impossible is a fantasy app of ours, TrippWire, that would record phone conversations (all legal considerations aside).

Devs can't integrate apps or functions into the OS. Third-party apps will always be second-class citizens, and can't significantly alter iPhone functions, including accessing the calendar or SMS messaging or adding any content to the otherwise useless lock screen that appears when you wake up the phone.

Casualites: Intelliborn’s Mario Ciabarra lamented to us that the SDK actually doesn’t give you all the same APIs and tools as Apple, and is missing a whole bunch of critical ones that’d let you add content to the lock screen, access calendar events or mail, or change the way the iPhone responds to events, meaning there’s no way for him to build his app Intelliscreen (above) using the SDK. Instinctiv CEO Justin Smithline also told us that you simply "can't create a well-integrated app," like Instinctiv Shuffle. This set of restrictions "flies in the face" of Apple's own philosophy of the creating beautiful software with the best possible user experience, says Smithline.

Pirated games, movies or whatever are a no-no in the App Store, obviously.

Casualties: NES.app, or any emulator, really, dooming us to bloated, over-priced renditions of Tetris by videogame mega-publishers. Also off limits, a dedicated video streaming app for something like the old Stage6 or QuickSilverScreen, which traffics in content that’s, um, not legally spotless, to say the least.

A bit different than the piracy concern, apps using copyrights, trademarks or intellectual property of a major company are sticky, and the App Store will steer clear of them if they're not developed by the company itself.

Casualties: Apps like TiVoRemote would have to be developed by TiVo or else they'd have dicey prospects, at best. Basically anything involving a company’s intellectual property or trademarks from anyone but the company themselves. An app that'll stream movies from your Netflix "Watch Instantly" account by anybody but Netflix would be another obvious foul.

Devs don't have deep access to the hardware. Jonathan Zdziarski, creator of NES.app and author of a few iPhone books, told us "much of the lower-level functionality has been hidden" in the SDK so "if your application is going to meet the necessarily political requirements, these more powerful features are off-limits."

Casualties: Stuff like Camera Pro, which gives you a ridiculous amount of control over the camera, would have a hard time complying with SDK rules. More than that, Zdziarski says, Apple has "privatized" the CoreSurface framework, which is "making it very difficult for developers to write their own movie players, 2D games, and similar kinds of renderings," especially with performance approaching passable.

Apple's app review process is a complete mystery to developers and takes forever, which can affect app quality and horribly delays app updates.

Casualties: Aurora Feint's developers revealed to us, "How the whole review process [for applications] goes is unknown to us," and that Apple doesn't even tell developers how many times their app is downloaded—they’ve gotta figure it out by the size of the check or have the app report back. NetNewsWire's Brent Simmons related the cloak-and-dagger headaches to Wired, telling them that developers are "not supposed to discuss actually programming on the iPhone with anybody—even though that would raise the quality of the apps." Between July 11 and July 17, Simmons pumped out five updates to its application and none of them had showed up by the 17th.

Apple limits app testing to five devices, so there is basically is no beta testing.

Casualties: Us. We’re the beta testers. Aurora Feint’s developers told us that for app testing, “Apple requires special signing to be done that binds each app to a specific device for debugging purposes,” and it’s limited to five, so they "definitely had some people camping out in our offices" to test. Twitterific creator Craig Hockenberry notes that the iPhone app's crash report come to a dev in a form barely more comprehensible than Swahili, on top of lacking info about what's going on in the phone outside their app. And then, if you do have a fix, there's no way to test it, other than to release it out into the wild through the App Store, "the developer equivalent of playing Russian roulette."

On the upside, Apple appears to be launching a beta testing program soon that'll let devs test apps on up to 100 devices, which jibes with what Tapulous CEO Bart Decrem alluded to in a conversation with us. Hopefully it does roll out in the next couple days, as expected. But even then, putting beta software on a device will require the iPhone or iPod serial number, and will still have to snagged through the App Store.

Apple's number one priority is Apple.

Casualties: Basically anything that threatens any of the iPhone’s core functions or key profit centers. Opera told us they aren't developing for the iPhone because the SDK doesn't allow apps "that interpret code, which is essentially what the browser does." Mozilla CEO John Lilly is more acidic in this month’s Wired saying, “Apple makes it too hard” but they’re using “a business argument masquerading as a technological” one. Any formats not supported by Apple essentially don’t exist. AT&T has implied to us that it’s Apple that’s not allowing laptop tethering, though there’s obviously network considerations for the carrier, so we're reasonably, but not totally, sure. The NY Times makes it clear that distributors of free music or video will have it tough too, so don’t expect a MyWaves or a Hulu app until the rules get clearer. Steve Jobs told the NYT that this does represent a competitive threat. "We will compete” with developers’ apps, he said blatantly.

As anyone running the 2.0 software knows, there are definite stability issues, lending a lot of credence to Apple's sandbox for applications—could you imagine it being more unstable? On the other hand, the massive anticipation for the Pwnage 2.0 tool, the vast universe of applications we’re missing out on—not just pirated goodies, but honest-to-God mission-critical wares—shows the SDK clearly doesn't provide everything we need it to. And it might never. But the black market app economy can and does fill the void. Apple might seek to shut it down, but the iPhone's two-class app economy may prove to be its greatest strength.

Related: Gizmodo's Essential Iphone Apps

AM is extremely easy to set up and has lots of options so you can choose which contacts you see. It supports Gtalk and AIM protocols in addition to ICQ, MSN, Yahoo and Jabber. AM even logs your IM sessions so you can refer back to old conversations. But best of all, it keeps your IM conversations going, even when you are on a call or out of the program, and sends Mail style notifications alerting you to how many IMs came your way while you were gone. All in all, an extremely good experience for IMing on the go, so jailbreak if you haven't yet, and install this puppy. [Google via Lifehacker]

Installation is pretty simple and allows for TiVoRemote to be installed via Installer.app, once a new source is added. After launching the program and entering the settings menu, all that's required is the TiVo's IP address. Once entered, your iPhone / iPod is ready to control your Series 3 or HD TiVo. As you can see from the video above and picture below, the key layout is pretty basic. But I am sure it's only a matter of time till it gets spruced up, allowing the TiVo guy to be on the iPhone / iPod. From complete instructions hit the TiVoRemote link for the Google Code page. [TiVoRemote via TiVo Community Forum]

Note: It looks like Twinkle automatically adds "Twinkleking" (their official user) to your followed list, which isn't cool. Remember to remove this if you don't want to follow them.

The look of the alleged store appears to be very similar to installer.app, and why not? It sure as hell works. Strangely, the applications already had a shed load of user ratings, but if this is part of Apple's testing routine, that fact is probably not too out of place. What do you, the discriminating public make of it all? [Monsterandfriends via Modmyifone]

Our test notes include the following:
—Before you start, I'd probably switch to Wi-Fi and turn off the auto-screen lock (set it to never under general in the preferences). This takes a few minutes, and you probably don't want your screen going dark while this happens.
—The magic'll run in the background, eventually kicking you back to the lock screen. When you return, you should have an installer.app icon on your menu.
—This worked for Benny and Blam.

The process is kind of scary if you think about it. With a click in Safari, a program with root access has been dropped on your iPhone, with full access to all your data. If you're not feeling brave, you may want to wait awhile to see how this shakes out. But I do see an iPhone Dev Team affiliation, and TUAW supports it, so I'd say we're looking good. AppSnapp includes some other features as well, such as a patch for the TIFF exploit, which they claim will leave you with a safer iPhone after you install the program than a regular phone running 1.1.1. More updates and impressions as they come along, let us know your success/horror stories with this in the comments. [jailbreakme via TUAW]