I agree with all points. The developer instance is the way to go. However, the fact that the question was stated as "Creating a clone is not legal" implies that the opposite is true (given that is false).

Cloning applies to the database and of course that is legal.

I was just trying to make it clear that although it is ok to clone or copy a DB, it still has to be attached to a LEGAL instance. It isn't the DB's that are licensed, but instead the INSTANCE is licensed.

The question as all of these should do, brings to light lesser known features of SS.