Analyzing why the iPhone is so widely accepted and Android is not is, in fact, rather simple. The difference boils down to control.
Apple applies dictatorial control over the software, hardware, and even what applications are allowed to run on the phone. While, on one hand, this is really frustrating for developers, it is, on the other hand, consistent and simple for users.
Google, on the other hand, hands massive control to both hardware manufacturers and 3rd party software developers. In return, they get poor hardware integration (expressed in slow user feedback, unresponsive touch screens, and hideous battery life) Further, their app store is a mess of incomplete, crashing, unhelpful applications. (In all fairness, however, Android is actually improving)
This is going to come as a shock to some of you, but the internet at large is very different from the mobile phone industry. So, Google, sharpen your pencils and take this one down: What works for the internet will not work for Android.
Apple has caused huge amounts of strife for their developers. Much ink has been spilled in anger and frustration over their policies, but, and this is important, the developers eventually come back. The iPhone is where the users are. Where there are users, there is the potential to make money.
So, Google, it might be time for a new montra where Android is concerned. “Don’t be evil, except when it benefits those who buy and use our phones.”