Android actually needs a ton of RAM because the OS is so much more flexible compared to iOS.
Fixed that there for you.

Android is not less efficient with RAM than iOS, it just allows more from Applications so that the user gets versatility rather than a locked down controlled environment.
The reason we want ever growing specs of our phones is not because they don't work now, it's because we want to push the boundaries of what these devices do. For that, more RAM, more CPU power, more GPU power is needed. Developers can write advanced software these days, as is evidenced by PCs, Macs and specialized computers. To bring all of this computing power to our pockets would mean that all the advanced functionality we enjoy on our bigger devices would now be available anywhere.
Heck, just think of the Atrix. Your phone could very well become your one and only computing device, serving as your laptop, your phone, your tablet, your TV set-top box, all by just dropping it in the proper dock (or even through wireless connection). No need for 3 or 4 devices anymore, just your mobile phone doing everything.
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an iphone5 in iphone4's look?.. sorry, no one would be willing to pay $1500 to that here. A new phone with a novel design is inevitable.
The 3GS says you lie.
The 3GS went on to sell more units than the 3G, despite using the same case design. An iPhone 5 in an iPhone 4 case will sell more units than the iPhone 4 did, don't you worry your little head about it.
I certainly would, especially if the CPU was an A5 with 1 GB. Only problem is, the A5 has 512 MB, not 1 GB
The A5 does not have any RAM. The iPad 2 has 512 MB. But guess what ? The iPad had an A4 with 256 MB of RAM while the iPhone 4 had an A4 with 512 MB of RAM.
So we could very well see an A5 with 1 GB of RAM in the iPhone 5.