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I placed embraces in quotes for this reason. There is a big difference from actually embracing something and admitting that it can't be policed effectively anyway. I would say they fully embrace it if they ever release detailed documentation for hackers, provide contests for cool hacks etc.

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The article never says that MS embraces jailbreaking. Keeping the original title "Microsoft: we can’t stop you from jailbreaking Windows Phone 7" would make more sense, since it would be pointless to argue on this, and would have kept the article's gist.

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