So I guess Apple is also an also-ran, seeing how they failed to overtake Blackberry and Nokia and are still hanging to 3rd place. 
 
The thing is, every new phone that comes out doesn't need to be groundbreaking.  Contrary to what you think, not everyone likes the iPhone hardware or software.  Sometimes, "slightly different" is good enough for the sale.
The fact that Android has picture backgrounds and widgets on the home screen is probably enough for a few people to ditch the iPhone or even just get an Android.  The fact that Android devices come in all flavors and size, including physical keyboards, might just turn people to those devices instead of the iPhone.
Choice is not a flaw.  The highlander marketing and economics really have got to stop.  "There can be only one" made for a good movie, but it makes for rather bland and boring products.
Especially considering all these devices like the Droid and Nexus One are multi-touch capable and enabled out of the box.  Trying to repeat they aren't ad nauseum doesn't make it true.  But what did you expect from the "Apple does no wrong" crowd, they are going to repeat the same myths over and over again : 
- 256 MB app storage limit
- No multi-touch
- Different hardware means harder apps.
Yet they ignore the facts : 
- App binaries are small, data is what makes Apps big.  Android Market apps stored on your phone's internal memory read their data off the SD card.  Non-issue.
- Android 2.0 introduced multi-touch.  Droid and Nexus One have multi-touch screens.  In the US, the stock apps don't have multi-touch, but Android Market apps with multi-touch work just fine.  Pinch and zoom in your browser ?  Install Dolphin off the Android Market on your Droid.  Non-issue.
- The iPhone is as much a diverse platform as Android, much more so seeing how every device came out of Apple.  There's currently 4 targets : iPod Touch 8G, iPod Touch 32 and 64 GB, iPhone 3G, iPhone 3GS.  This summer's iPhone, which will probably go to a higher res display, will add a 5th.  The new iPod Touch in September a 6th... and so on.  Fragmentation is the name of the game in tech.  Programmers have been dealing with this problem for the last 30 years.  Non-issue.