...Apple needs to:
Enable ALL Flash in iOS
And Adobe needs to enable reliable and fully integrated touch interfaces for ALL Flash - at the moment Flash is intended for use with mice and keyboards, not touch, which is compounded by its unreliability (it's not hard to make a Flash video player crash - just move the slider back and forth a couple of times and voila, it needs to rebuffer the whole video).
Open development up (less restrictive)
Yes and no - they are loosening their restrictions which is good, but having such a tight leash also protects the user by ensuring that there is little room for exploitive or very buggy software. Reliable user experience is more important for the bulk of users (personal opinion based on several years of dealing with customers in the retail and wholesale sector) than the "freedom" of an open OS. Sure, there are many who need it for their specialised needs cannot be met by "closed" operating systems, but they are a minority. People just often mistake what they want as what they need.
Re-make the iOS interface (widgets etc, more interactiveness)
Again, yes and no. Widgets are nice, but need to be
very well produced to not have a very noticeable detrimental effect on power and data consumption, which is obviously an issue for mobile devices. And "more interactiveness" is a rather vague request, but I would think it is up to app developers to achieve this, not Apple.
Develop 3 models of iPhones (can't compete with 20+ android models)
You neglect two things - firstly, Google doesn't make any phones, just the software, so Apple are competing against all the smart phone manufacturers, not just Android. Secondly, the Android phones are also competing against RIM, Nokia, Sony-Erricson etc. etc. - the smart phone market is a lot more complex than just Android vs iOS.
Develop 3 models of iPads (won't be able to compete with the android tabs coming
Again, this is not a straightforward debate - Android tablets will be competing against each other and not just the iPad. One needs to remember that because there are so many competing manufacturers who intend to roll out an Android tablet, there will also be many competing hardware standards (in an attempt to differentiate from the competition with different aspect ratios, graphic processors) which will complicate the lives of third arty software developers (and cosequentially, consumers).
iPhones need to be sold at ALL wireless network providers
I think the reason for the exclusive contracts is because it ensures that the carriers are dedicated to supporting the iPhone. If it were sold through every vendor, then it becomes victim to the "flavour of the month" phenomenon where a product is only supported for the couple of weeks or months after release where it is popular, then it falls by the wayside. This results (in my opinion) in an environment whereby a phone cannot reach its full potential as vendors have moved on.
Unless they do ALL that they'll lose to Google like they lost to Microsoft in the mid 90's.
Unless Google starts manufacturing hardware for their software I don't think there is much for Apple to be worried about. As long as Google only cranks out the software and leaves its implementation up to others, there will always be issues similar to the Microsoft/PC relationships, where, due to the virtually infinite combination of hardware there is a virtually infinite risk of compatibility issues, for example.