I seriously think that Android is the best thing to happen to iOS. Despite the design flaws, fragmentation, issues and every other bug, Android is the nearest thing to a competitor that iOS has. Yes, I am aware there is something called Windows Mobile 7.
The very fragmentation and ubiquity of Android is its strength. While for US, I do not know how the economics work, but for a country like India, not everyone can or would afford to buy a phone for Rs. 30,000 (~USD 666.7). What Android is great at is tapping THAT market who are looking for a better than average experience with mobile. I mean if every one was going for the premium buyer who would make good experiences for the not so affluent.
I have an iPhone, an MBP and will now be spending on the iPad 2. But then I look around and feel so happy that my friends, my juniors from college can afford a decent enough phone without sacrificing on the joys of modern technology and design in mobile OS.