The Samsung Galaxy II is only $50 less. Furthermore, the Galaxy II is outselling the cheaper HTC and Moto phones.
So the point about Android only selling because of price is a flawed one. Price matters, but not the only thing that matters. Android is a platform losing its direction but the arguments about iPhone surge here are misdirected. Case in point above.
The Galaxy III will be released sometime next month, plus with the all ready released Galaxy Note will make for a interesting Q2. I'm still holding my breath for a iPhone with a larger screen. If it doesn't happen well there a still lots of great phones to choose from.