At this very moment, it is possible for any Joe Schmo to go over to Microsoft's server and download all of Windows Phone 7 XAP application packages without the need of a WP7 device or Zune Desktop software. This is possible because Zune software uses ATOM XML feed to grab application info, so it's just a matter of diving into the code to find the XAP package address and download it directly. Once you've got the XAP package of an application, you can simply unzip it and have your way with all of that app's assets and resources - including the source code of the app with the use of Reflector (a debugger for lots of nasty projects.)
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