> 1. How do we make a software distribution system that simultaneously keeps malware off but allows developers and users liberty without a third party policing the content?

Android lets you install alternative marketplaces. In effect, the user now has to trust only a couple of marketplaces and this should help keep away malware while preserving freedom.

> 3. How do we workaround the fact that most people do not and will never have an interest in the technical workings of devices

Regulation :-( Ford is not allowed by law to build cars that can only be serviced by Ford. It should be the same for computing devices.