Except on Android you pay a large price for the customizability with having to navigate the malware-fest that is Android Market. With iOS, you're in a tightly-controlled walled-garden where you never have to worry about that stuff. That's a big reason I'm going to get a Windows Phone - MSFT will have very stringently control the Windows Marketplace.
Pure FUD.
Have apps containing malware made it onto the Android Market? Yes.
Has it happened often? No.
Does Google have a process in place to remove these apps? Yes, and not just from the market.... The kill switch will remove the offending application from a user's phone as well, just in case the user isn't savvy enough to have caught or read about it. This has been used.
The truth is the malware infested apps are mostly coming from people who want something for free and are side-loading applications from 3rd party markets or downloaded from the net. This is no different than your iPhone getting hacked via the open ssh loophole. You installed something that didn't belong on the phone, and it opened up an exploit.
The "walled garden" approach works for end-users who are not tech-savvy in any way shape or form. I myself am an avid tinkerer. I love tech and I love the ability to do what I want. I see the "walled garden" more like prison walls.... Which is why I chuckle every time I hear the term Jailbreak. It's so fitting to me.
Real world example: Is there an area in your city, or maybe along your commute that has horrible reception? Horrible for voice or data, it is not important. So on my particular android phone, I have a fully customized ROM. I have replaced the PRL (preferred roaming list - a list of cell phone towers for roaming and who the carrier is and what I am allowed access to) with one that my carrier provided to certain "high end" or "business clients". This allows me to jump onto the "roaming" carrier and maintain 3G data speeds. Normally, there are areas where this isn't allowed. I also have an application called ROAM CONTROL. This app allows me more options to set roaming, in fact I can force it to stay on ROAM in areas where there are data speed problems.
There is another application called Superuser that lets me allow or deny Super User access from any other app.
Every application in the Android Market lists what permissions you are going to give it. If you don't agree, you don't have to install.
In other words, I like being given the choice instead of someone deciding for me like I'm a child.