Why would I start developing a channel?

"mtoto" wrote:
2. Roku may cease distributing the Channel Application ... if roku has reason to believe that such action is prudent or necessary.

Combined with the preceding clause this seems fatal. Why would I, or anyone else, invest in an application if roku can just remove it if they decide to compete with it directly or via a partner or even just for ransom?

That's a rather extreme interpretation of that clause. They're just saying they reserve the right to pull the channel if it violates Roku's terms or DMCA. There's nothing to suggest they would pull your channel because they want to compete with it.

"mtoto" wrote:
3. All Content must be in the English language and originate in the United States unless otherwise agreed by Roku in writing.

Being based in UK, with customers and material in most european languages, this clause really brought me up short. What on earth is this about? Really? Did roku not hear about the global internet yet? Are roku trying to be a generic set top platform (which they seem great at) or a gatekeeper (at which they have no chance long term at all - IMO)?

This is only true for channels published in North America due to the DishWorld agreement. It doesn't apply to international channel stores.

"mtoto" wrote:
4. Why are Roku so paranoid about content viewed with their devices?

MicroSoft & friends ship PC's with a browser that can access anything that is out there - no one is pinning copyright claims on them are they?

Again, this probably comes down to roku's business model - but please spell it out for me.

This is covered extensively elsewhere. You have to have the rights to distribute the content on set top platforms. This is true for any device, not just Roku. If you have the rights to distribute it, then Roku won't stop you, but you can't distribute content that belongs to someone else.