All true, and still they've had great success. (I'm actually surprised, given how bad the Market is and how blatantly the carriers are screwing up the phones). Which just means they can do even better if they can address those obvious problems.
On the other hand, even though I generally like Java I'm finding the move from iPhone development to Android development to be a depressing step backwards
It was the opposite for me. Between getting rid of header files and manual memory management, and having the app run right away on my phone rather than futzing with certificates, I'm enjoying Android development much more.