All that is to say that I think this is no time for Android to take faith in raw numbers of phone activations, or even bulk downloads of apps, the vast majority of which are likely of free apps. The Android Market could be a lot friendlier to non-geeks looking to search and browse the most popular and highest-rated apps. It could make entering a credit card for app purchases an easy step in the setup process. And leaving aside the well-covered malware and fragmentation concerns, the biggest concern for the overall health of Android might be the perceptions of a young generation of developers who write in agile web languages, take full advantage of smartphone and social capabilities, and see a lot of evidence of the App Store's profitability.
It seems less like a sign of strength that one can convince developers to give away their apps for just 10 cents than a sign that maybe those developers are just happy to get a clear spotlight shone on them.