For me, it really comes down to the app advantage and the interface advantage. Sure, out of the box, Android may give more configuration options, but it has never gotten to the point of where I could just give the device to my mom, say to run apps touch this, and this is the home button. Everything is just intuitive for someone who isn't computer savvy at all.
While Android does do some things that could attract very computer savvy people, too much of its regular system requires people to learn a certain amount of techie jargon to operate. This has been the case since the entire subsystem was imagined. Like I so eloquently mentioned, time and time again on this site, it all comes down to the very mantra Apple went for in the first place. The very mantra that, it seems, none of the competition either understands or even tries to do.
Like I said with the Phone market. The established people who are really lapping up these Apple products aren't Apple fanboys, nerds, yuppies, or whatever name people feel like throwing at them. There just isn't enough of them in the world to even remotely produce those numbers. If I'm wrong, then Apple products should've made a huge dent in the computer industry *BEFORE* the iPod, the iPhone, and the iPad. But the truth of the matter is that it didn't. Afterwards, even Apple keynotes say they're a portable company, because that's where all their big revenue is coming from.
It came from the great timing of business, and the way they established (or changed) the market into one for which the most attractive buys in that market follow that precise Apple mantra. Machines and systems built for humans to use naturally, not machines for which humans have to learn to be machines to use. Steve gloats that factor every time they put up that image with the sign that has the crossroads of Technology and Liberal arts. Apple jumpstarted or produced these markets, so that's the mantra. The desktop and laptop market was established from the Techie side of things, so computer savvy competition still rules that market.
It's why without a rebuild of Android, from the ground up, with this in mind, they will never compete with Apple on their own game. Instead, they'll offer a more Windows approach to the market, but without being Windows per-se. Choices are choices. Still, it takes more computer savvy to operate Androids. One of the reasons why, though the growth is there, I don't forsee the market toppling Apple as long as technical savvy folks are severely outnumbered by the less technical savvy folks who don't want to bother with all that mindset training to operate a machine. So to speak, the actual major audience of these Apple products are the complete and utter opposite of the folks people seem to talk about. So if all the people, for which people think are these apple users with some holier than thou attitude, suddenly stopped buying Apple products, the iPods, iPads, Iphones would still be selling like this, and getting the same market share. Even we, on forums like this, are hardly even a dent in that market.
Same thing for the phone. If a phone maker wants to really compete with Apple's true market, they need to make a phone for which it isn't daunting to approach. It needs to market to the people who still hold onto their non-smartphones because they're simpler. The other companies also need to change their advertisements. Stop trying to preach some technical savvy jargon on the TV, when people simply want to see some real useful app and an extremely simple (non-thinking) way it operates and actually shows use. Do each one in a couple of seconds or so. Non-techie people just want to see how simple it is to do something awesome, and just what they'd like to do.
Now for me, personally, it's all about the Apps and performance of said apps. Something Android has yet to offer. Yes, a lot of it is due to being late to the game, but performance is another thing, too. I haven't seen one which was comparable even though the multitasking isn't bad. Still, I haven't really had use for said multitasking that goes beyond what iOS 4 already does. Still, it's simple. There's a good number of Apps only Apple has, and they work really well. Apple has the KORG machine emulators, Android doesn't. Apple has a number of music interfaces that I use, with full ability to share, export, etc. Android doesn't. iOS has Garageband, Android doesn't have anything like it, though it did get an app sort of like fruity loops in it. Not a bad start, but definitely missing quite a few instrument options to allow the range of music creation GB does. Still, it only competes with certain 3rd party applications made way before Garageband even launched.
But here's the catch, it does pretty much what everything else does. The products launch on iOS first, someone tries to copy, like a Parrot, for something else and often not shooting for the moon in doing so. So they get something working, most often to a less intuitive interface (but every once in a while, doing it well), but then the originals update, and the process begins anew. Now some will say, sure, it's a wait, but the apps will eventually catch up. But then I present the PC/Mac argument all over again. With the PCs always arguing that they got these Apps first. So why suddenly change the reason because an Apple product is ahead of the App game?
Still, Android offers some Techie aspects into that market, spilled over from the desktop/laptop model. They seem more like direct Windows competition, than anything else. So in a way, they add spice, and get enough hits for usability to keep Apple on its toes for what they need to do to stay on top of their-specific game. It's all good.