Apple is now selling an OS X Lion USB Thumb drive for $69, which allows you to install Lion without the requirement of purchasing/downloading it from the Mac App store. It is marketed to those “who do not have broadband internet access at home, school or work”.

This bootable USB based Lion installer legally requires that the Mac you are installing it on already is running Mac OS X 10.6.6 or later, but it has been reported that you can install Lion on supported Macs previously running Leopard if you reformat the Mac’s boot drive first.

Installing Lion using this USB Thumb drive will not create the Recovery Partition, which is a unique feature of the Lion download from the Mac App Store.