I'm wondering how accurate this article is. I'm an iPhone developer, and the iTunes connect website where you monitor your download statistics has been down since the 24th for a 4 day scheduled outage. It's still down now: http://itunesconnect.apple.com/. I can't see any possible way they could know how many downloads they've had.
We do this with our iPhone games, like Raptor Copter (hunt velicoraptors in your Chinook helicopter!). It's part of our achievements/leaderboards framework, so we kept it in, but it also lets us compare the total number of sales to total iPhone device ids in our database. Piracy isn't a big problem, and we generally don't care anyway, but the data is available.
We had the scrolling LED sign in our office rattle off sales in real-time, which was fun for awhile.