> Or a bad guy can infect the origin machine of the signed app and alter
> the binary before its signed.
> 
> Personally, I don't like letting ANYone run ANY code on my machine
> without my explicit permission. That includes HTML email.

Nobody said anything about running code without your permission.  Just
taking the app installation process from 2 or more prompts, down to a single
prompt, provided the software developer has already met certain
requirements, including establishing a traceable identity.

Anything is possible, and this is of course no exception.  Whenever some bad
guy infects an innocent developers' computer for the sake of distributing
bad apps signed by someone else, it will quickly be discovered, and quickly
corrected.  Yes, it's bound to happen sometimes, but all the measures in
place serve to limit the extent of damage.  (Like providing an MD5 checksum
with your software, but more automatic, and more powerful.  Not impossible
to circumvent, but an obstacle nonetheless.)

Having the trusted-app-signing obstacle to bad guys is still a step in the
right direction.  It is more difficult for a bad guy to infect somebody's
machine and modify a binary before the innocent person signs it, as compared
to the bad guy simply infecting a binary.  Take that a step further.  It is
more difficult for a bad guy to hijack *any* method of app signing on
someone else's behalf, as compared to simply not signing.  And when it does
happen, the innocent developer will quickly be informed, and will have
personal motivation to correct it quickly.

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