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Article: Google Taking Aim at Device Modders in Android 4.4 KitKat
SElinux has already been largely bypassed. Doesn't work on all devices but it shows it can be done.
The "locked bootloaders" is the key term, and most who root/ROM devices avoid those entirely or until an exploit is found.
The title seems misleading. I doubt Google has implemented this to shut down root. More likely its offered for OEM enterprise users similar to Samsung's god awful Knox.
The code is open source. AOSP is any way. Nothing stops anyone from compiling it themselves and redistributing it except for missing proprietary drivers.
In a nutshell root isn't going anywhere. Knox didn't throw a wrench in root, just tattles.
Great explanation Jay and I agree, they surely are not going to shut down root or customization, those boys are good at what they do. They will have to go in the direction of Apple to really limit what can be done and if they try that they will end up in court.
In a side note I had my first experience with Apple and the iPod Touch with my Grand daughter and I must say it is a pain in the butt, hence Apple enter your information a hundred times or every 5 seconds or Android and register your email