Not to nitpick, but people create native apps all the time and throw them up on servers for download and installation. In fact I have a handful on my phone right now. It's one of the main reasons I've gravitated toward Android on mobile and away from the more mixed iOS/Android devices I used to buy. My first smartphones running PalmOS and Windows Mobile allowed me to download and install apps from trusted developers and I disliked the dodgy hurdles I had to jump in order to do the same on iOS.

I agree completely about the privacy thing though. I guess it's a bit easier to see when a native app is sending data over the network with the right tools but in general, there's just as much room for abuse with either model.