I think many of you are completely missing the point of the blog. The iPhone isn’t better than Android, it’ll just be used differently, that’s all. If you can’t see that iPhone’s, “we’ll take care of the hard stuff, you just use our cool phone” is more attractive to the masses than Android’s “I can control every facet of my phone’s OS” than you really need to understand more about the world outside your computer screen. Most people out there don’t give a crap about doing what Android can do, that doesn’t diminish what it is, it’s just that people like my 73 year old father don’t care.
iPhone is more than technology, or the App Store, or the $99 fee to release a product, it’s the definition of simplicity that let’s you make phone calls. Most people love that kind of stuff.
Also, for what its worth, Apple approached Verizon about being the US carrier to the iPhone, but they were turned down because they wanted to release their own phone. AT&T was the Plan B.