Which is great and all, but the fact that you only need to develop for (effectively) one piece of hardware is still a huge competitive advantage for the iPhone vs. anything else. (Except the Pre, but the Pre has other problems.)

If you look at the way the Android SDK handles device differences, it's really much less of an issue that most people seem to make it out to be. Accommodating different resolutions, for example, is pretty trivial for an Android app developer. The only (IMHO) that might be an issue is the differences in input capabilities (ie, hardware keyboard or no hardware keyboard, trackball or no trackball, etc). That should no be an issue at all for productivity apps, but I do see how it could be an issue for games. It's hard to balance your level difficulties and design your play mechanics if you're not sure what kind of input device your players will be using.