Maybe I'm not making my ultimate point very clearly, so let me and try to get straight to it:
I'm not trying to suggest how Android should implement a better security model, rather I'm putting forward a view that it's the right business decision to opt for one. From a customer's perspective, security is more important than it was in the PC-era for all the reasons in my prior post. I don't believe 99% of buyers know the difference between Androids market and RIM/Apple except for the number of apps in each. They do however, have strong feelings about security.
Although Android is enjoying great commercial success today, they aren't a runaway market leader like Windows was in the last era. Android cannot afford to have a security reputation like Windows because it's a three way dead heat between Android, RIM and iOS and people have viable choices. I often wonder if this isn't the main reason that Windows Mobile has less than 3% share today and even shrinkng since WP7 launched almost six months ago?
And my ultimate point, Android's growing a reputation for having the poorest security model of all. I believe that will ultimately cost them their current leading position because they have valued an open architecture over a more secure one. At the end of the day, consumers and enterprises will choose a more secure platform over an open app market if Android continues to get a "Windows" reputation for security.
So that's my argument...security is a big market driver for Android market sensitivity. I want Android to succeed...my iOS products are far better today because of Android's competitive innovation. Likewise, Android users have a better experience because iOS has raised the bar for them. I just happen to believe this might be a critical barrier to their success.