The OP brings up many valid concerns, and asks, as a consumer, how much is one willing to tolerate this?
My answer: A very long time, as long as Android phones and plans continue to smoke iPhone on price and provide an "almost iOS" experience.
The Exhibit II has Android 2.3.5 installed. T-Mobile charges US$30 per month for 100 minutes of talk, unlimited messaging, and 5GB of 4G data; thereafter it reverts to slower data and 10 cents per minute of talk. I am not a heavy talker, nor do I stream video or audio (and when I do it's usually within wifi range). When I was looking for a plan, I saw a similar offer for a Virgin plan (I think it was US$35). Friends overseas tell me even cheaper Android plans are offered through local carriers.
For owners of Android handsets, using Facebook, Twitter, email, Web, and most mobile news sites is comparable to iOS. I miss Instagram, but it is coming soon to Android, and in the meantime I make do with Path. There are a few other missing Android apps, and the UX is slightly inferior, but considering it's $30/month, it's good enough.
To many people, that's the value of Android. The UX is very similar to iOS, it handles most smartphone functions, and it's a lot cheaper.