Yes, people will buy them for awhile, but once they discover these problems, they will grab an iPhone. Most of this is due to the fact that Android phones will vary greatly and Android is open source. What does open source mean, well, that an bunch of incompetent handset manufacturers can mess around with it. It saves them a lot of development, so it's a good deal for them, but not for the poor customers.
1. Apps are not tested, they are just placed in Android Market.
Most apps don't make it through Apple's quality assurance, even though developers know they will be tested. Why does Google do that? Well they would have to do the same thing the developer has to do, test it on all of the Android releases and Android platforms, a big and expensive job. So, instead they let you return the app.
2. Apps can be returned.
Think about it, you're paying a few bucks at the AppStore, but you know it will run, since it's been tested by Apple. But, because Google doesn't test them, they have to let you return them. Yes, maybe you buy a few apps for a few bucks that aren't what you expected, but that hurts the bottom line for any developer. If we were talking about big bucks, it's reasonable, for a few bucks, it's not.
3. Android phones will hardly ever be able to be updated to a new OS release.
Apple will occasionally insist that you test your app on a new release or have it removed from the AppStore. So, if Apple cannot guarantee upwards compatibility, what are the chances that Android releases will allow previous apps to work. Do you think a developer could possibly test all of these combinations.
4. Apps are easily pirated.
Android phones cannot be locked. One of the reasons that Apple fights unlocking is to prevent pirating. If you unlock your iPhone, you cannot purchase apps from the AppStore. Apps on Android have no DRM, so it's relatively easy to pirate them (even if it had DRM, it's not that difficult). So, we know that any app that costs anything will be stolen.
So, in the end the user will get buggy apps. Developers will have their hard work stolen. Users will be stuck with whatever OS release comes with their phone.