One of the reasons you're going to see Android on a ton of phones—aside from Google's juggernautical influence—isn't because of its ass-beating potential, but because hardware makers don't have to pay anything for it. They do have to pay for Windows Mobile, the other major free-floating smartphone OS, on the other hand, and Steve Ballmer is saying it's going to stay that way, even as RIM's BlackBerry passes it in marketshare. Of course, by the time Windows Mobile 7 finally, finally enters a much more hostile mobile world, he could be singing something way different. [Reuters]
The largest problem with Windows Mobile is that it is not expressly marketed to the masses like Android and Iphone is.
Windows Mobile is targeting corporate types, who actually want/need options like full exchange support and encryptable voice communications. I know many medium to large size businesses in my area that use Windows Mobile almost exclusively.
The right people in the corporate world know what works better for their business, and for those companies where Windwos Mobile is an asset, it is already favored without a lot of mind-numbing advertising needed.
Bottom line, playthings like Android and Iphone are for the "average" demographics. RIM and Windows Mobile are intended for business.