The only way they can compete in a market such as this is to partner with a manufacturer, and the end result is that they have to play to the manufacturers whim

The only way they can compete in a market such as this is to partner with a manufacturer, and the end result is that they have to play to the manufacturers whim (and often the operators whim if the manufacturer wants to ship devices). The end result is absolutely crap devices loaded with useless "value added" apps and skins. If they could make something revolutionary that people want to have no matter what (like Apple did) then some manufacturers might start selling such devices anyway. But my hopes aren't high for that happening anytime soon.