Not enough software and non-competitive prices are exactly where Android on phones was three years ago. And both are those easily, almost inevitably, fixable. We are talking about a moving target, a target that pulled off the same basic trick once already. The apps will come and the prices will drop. I still haven't seen a compelling reason why the iPad is any different than the iPhone in this regard. Apple is betting against an entire industry, and you very, very rarely win betting the house (disclaimer: I am sure Apple will still profit handsomely and own a decent percentage of the market).