Agree with your points. What I was trying to say was that Google has created a competitive ecosystem like PC manufactures that will drive the price of handsets close to their cost thus depriving them of profit.
In other words there is less and less differentiation between a samsung and htc and lg handset as the pace of innovation slows in hardware. They cannot differentiate on software this they are left primarily with price. This will only exacerbate in the future.