Your mainstream user does not give two shits about "open-ness" and apps running in the background.  Odds are they think the iPhone does already, especially with push notifications.<p>It is a nice alternative to the iPhone on carriers that don't have it the iPhone yet, but that's certainly not a position of strength.  The iPhone will be on other carriers and at that point the iPhone will almost always win out.  Android is a nice second best to the iPhone.  Price is irrelevant too.  There's already a $99 iPhone, so what are they going to do, lower the Android phones to $50?  Even at that point, the iPhone is still worth $50 more.  I think palm tried this with the Pixi, the Pre, or the Pez.    Yeah, that worked out well. Go lower than $50 and you're out of smartphone territory.<p>Oh an unlocked phone?  Your mainstream users do not give a shit, especially when it costs $538.<p>Everyone is trying to be Apple, no one is trying to BEAT them.