Would you rather have Apple and Google address this situation, or the government?
That's easy to answer, as long as we are dealing with companies that are seriously interested in protecting themselves from having to deal with the negative fallout of a security breach on their devices.
All it's going to take is one major security scandal to have consumers demanding more protections in the digital world. At that point the government will (sic) fell compelled to step in.
I think it would be a good idea if Apple and Google took care of this problem themselves.
Apple, already, largely fulfills this function but there are ways around it. If everything has to go through an Apple cloud, it seems like Apple could have a pretty good handle on information flow.
Since we are talking about a phone in this case, it has the ability to bypass the iCloud if the software is written right.
However, Apple does have an interesting level of control over the level of security that Android-based phones will never have:
1. Apple has control over the hardware and firmware design of one phone per year. Compare this to approx. 33 Android phone manufacturers putting out multiple phone models per year. Other then the top seven, who is making these other phones?
2. Apple has control over their own iOS and iOS updates. Compare this to the Android market where flavors and versions abound with no certain upgrade path exists. This is especially serious if an exploit of one of the flavors or versions of Android should be found.
3. Apple has oversight of all of the App Store programs. If one should be found to have security issues, it won't (a) be allowed to get into the store, or (b) if it does make it past the vetting process, Apple can deactivate all copies sold. Compare this to no oversight of the myriad of Android applications that are for all the various phone models, and android flavors & versions, written by programmers, some of which are not licensed to write Androiapplications. The door is wide open for abuse and there is no way to easily or certainly deactivate malware applications.
It seems to me that Google and Android phone manufacturers have a lot to fear the day serious exploitation malware is discovered. Once the platform is felt to be unsafe by the public, it may never regain market comfidence...especially by the government and enterprise customers.