Well, it's going to charge your account in that currency. It's up to your bank (or maybe Google payments) to do the conversion. One thing is certain: you aren't going to be getting the market price on the exchange.
(If they did it the other way around, charging you in your native currency, then it's the developer that would pay the currency exchange fee.)
Right, but the Android OS should convert it into the units of measure of the country so there is no confusion on the user's part. This is just one example of where Google supposdly A/B tests the thickness of lines, but don't care about the big picture issues that will hinder adoption.
I gotta agree with him on this one. There's no reason the market app couldn't display the current conversion into your local currency whenever you browser the market.
How does Google know what your bank will charge you? The current "exchange rate" has a little to do with what you pay, but it's not like saying "$1.99" where you know you'll pay a dollar ninety nine.
(If they did it the other way around, charging you in your native currency, then it's the developer that would pay the currency exchange fee.)