I read this in the Android Market Business and Program Policies:
2. Android Market Business Policies
Returns: You have 24 hours from the time of purchase (not download) to return any applications purchased from Android Market for a full refund of any applicable fees. The option to return an application within this timeframe will be made available to you through the Android Market user interface. You may not return any Products other than applications.
Upgrades: Android Market does not provide upgrade functionality for any Products. If a Product offers free or paid upgrades, those upgrades must be obtained directly from the Developer responsible for the Product.
Reinstalls: You are allowed an unlimited number of reinstalls of each application obtained via the Market.
So basically, anyone can download a game, play it, potentially finish the game, then return it within 24 hours for a refund.
I could see a 2-4 hour turn-around, but not 24 hours. A user should know if an app or game is bad in the first 15 minutes of using it.
This may be bad news for game sales. How many times do you replay a game once you've beaten it? Some of you may, but I know I rarely replay an XBox or PC game I've beaten.
Also, there have been many times I bought a game, played it, and beat it in less than 24 hours. If I could have taken it back, I would have possibly saved $30-60 a pop!
Also, think about all those small apps that will cost $0.99. They may be silly, novel, or just kinda' fun. Someone can buy it, return it, then download/return at will when they want to show it off to someone. Sure, this is a cheap way around paying 99 cents, but it's possible that many people will do this. The only way to discourage this is to make the refund procedure a little troublesome.
In short, the best apps will likely be retained after purchase. But I wonder if this ease of return policy will cause many 99 cent app and game makers to stop developing if a huge percentage of paid for apps are returned once they've been thoroughly 'used'.