That Apple charges the highest margins in the industry is both well known and not exactly a benefit to consumers.
As for developers, you raise a good question:
Android now more profitable than iOS for well-known game developer
Angry Birds Makes More Money from the Free Android Version than from Paid Ones
Developer says Pocket Legends makes more money on Android than iOS
Android vs. iOS: A Developer's Perspective
IDC: Developer interest in Android nearly equals iOS
Today's Mac users talking of Android sound like yesterday's Windows users talking about Mac.
iOS is a good platform, Android is a good platform, and neither is going away. The perception of a platform war is the stuff of corporate marketing and end-user fan sites; smart developers deploy to both.
It is the margins that allow Apple to innovate where others follow- which is a DIRECT benefit to consumers. And consumers are demonstrating their appreciation of that benefit by driving continuous marketshare gains, in spite of the competition. With the amount of revenue generated by the profitability is exactly HOW Apple does it. You don't see Dell, or HP or even Lenovo or Sony innovating at the same level as Apple. Which is why Apple has proven to be a moving target. Credit the Android team with the engineering chutzpah to be able to build out a parallel OS that can deliver attractive features that allow a price point from the handset makers that let them sell an attractive product at a decent price. But the Android team only is able to do it because Google is funding it as their ad revenue trojan horse in the mobile space.
You can be sure that Google is pumping a lot of money into Android to ensure that the platform gains the ubiquity they need to drive the profitability they want from the mobile space. Google is not intrinsically interested in Android as a platform, they are interested in Android as a mobile ad delivery vehicle. To that end they will do whatever they need to do to ensure that it delivers - until they find something that delivers better. If Andy was smart he would be cultivating background safety-nets to land Android in when Google switches gears and dumps it for something even more pervasive. Because Android is a COST center for Google, not a revenue center. There are no direct revenues generated by Android and this above all should be ever present in Rubin's mind.