Absolutely no question that Apple has been instrumental in developing an entirely new market. However building demand and keeping it are two different things. Anyone who thought the iphone would be a disaster was a moron. All of the requirements existed and the device clearly filled a niche. The itouch is a much less significant development IMO. We're still 6 months to a year away from a true competitor to the iphone but it's coming. Beyond that android has significantly more potential (IMO) to be a crossover OS that can power smartphones, netbooks and tablet/notebook's. If we separate the 3 variables, hardware, OS and content there is no question that apple is and will continue to provide the highest quality hardware. If we look at the OS we currently have microsoft complicating things specific to it's OS and Apple focused on using it's OS to force content choice. This leaves google as the only player capable of delivering an opensource OS that not only doesn't effect its bottom line negatively but could enhance it. So we have a natural convergence of 3rd party development that operates across all 3 platforms. Google Doc's, Google voice, Gmail and other productivity apps will augment android driven comsumer app's and the totally open source will allow development of a lot of media related capability. By mid year you'll have hacked ipads on android unfettered by apples very limited OS (as currently configured). Android is a fully functional OS. So far the lack of a broad linux following in the consumer market is based on the lack of 3rd party app's. As android grows in the smartphone segment of the market it will provide a venue for commercial development of not only android apps but android capable developers.
What the ipad will do is provide a hardware showcase that those 3rd party developers can utilize to show what is possible. 18 months from now you will have a fully functional ipad clone running a 4th or 5th generation android OS. We're about 6 months or so from Walmart having a 2nd or 3rd generation android phone available on straight talk with unlimited 3G service for about $50 a month. Android apps will translate just as easily to a "walpad" and by the end of 2011 you'll be able to buy a AMD driven 120G SSD android powered G4 capable walpad for about $400 that will do everything a current laptop, iphone,itouch combined can. The real endgame for google is and has been to backdoor linux into commercial development as an alternative OS that is viable.
All apple did (exactly what iphone did) is provide an exceptional hardware prototype for free. Just like with the iphone all the back channel demo's for the new android based "walpads" will be run on hacked ipads. All apple did was give google the platform it really needs to show of what android can do. By the end of 2011 Android driven tablets, netbooks and smartphones will dominate the market....
