You keep talking about openness and that is why Android will succeed. Can you tell me any open source program that has taken the consumer world by storm?
First, Android is an OS not a program. However, for the moment just muddle that into one generic term and lets run with it.
Sure. Home internet routers. Lots of them have Linux on the inside.
Apache. 100's of million of consumer users interact with Apache every day.
(the significance being in what users actually "use" as opposed to which specific machine the cycles are consumed on. )
Firefox ( which is covered in other responses)
-You can only load 512MB of apps on Android. I have almost 3GB worth of apps on my iPhone.
No. You can only load 512 MB of code. Not an app (code + data). Since end users really don't interact with the file systems on iPhone/Android devices anyway why does it matter if the code and data are stored in different places on the file system. No one is looking at it and has no signficant impact on running the application.
-Because no one pays for Android apps, no dev is going to that platform unless they can live off of ads
For someone who is waves off sweeping generalizations you sure seem to leverage them yourself. The majority of App Store stuff is free too.
As mainstream consumers pick up Android devices there is no reason that will change. yeah, right now there is a higher than average presence of hard core open source folks on Android but the App store is suffering from a very similar sustainability problem of very low (or free ) prices couple with non 6-7 digit purchase volume numbers for a substantial number of developers.
-In the US T-Mobile's 3G coverage is far worse than AT&T
Why is Android restricted to just one 3G network. It is on Verizon's network whose 3G coverage is wider than AT&T. Android is cell service vendor neutral unlike iPhone (in the US). If coverage is a major issue that's a minus for the iPhoneOS.
BTW, the iPhone platform hasn't suffered because of the tablet. It has actually been Mac OS X that has suffered because of the iPhone and probably the tablet.
Not really. iPhone OS revenues help pay for shared core OS code. Additionally, OS and developer fees also help to spread the development tool development over a wider base of users. There is a mostly transferable skill base that can also be used for Mac OS X software.
Mac OS X devices primarily compete in the $1000 and up space. The iPhoneOS devices primarily compete in the less that $1000 space. ( the only overlap in pricing is the Mac mini which is a quirky space filler that Apple is somewhat committed to. Clearly they are conflicted about the product. )