The reason android is doing so well, is because its FREE!
Any manufacturer can make a phone and put android on it, saving massive dev costs (although they need to know how to make it work with their hardware of course)
Thats wrong. There are plenty of "free" operating systems for mobile, but Android is the first one thats actually been any good. Its doing well because its good.
2.2 Froyo is the one to watch at the moment, as even in hellabuggy (compiled from SDK) form its still 2-4x faster than 2.1
Speed is good, but theres a difference between real world processing speed and number crunching. 2.2 may run faster than the iPad in benchmarks, but its the responsiveness of the UI that makes the difference. The iPad (and, by extension the next version of the iPhone since it looks like they have the same chip) is unbelievably responsive in real world use. The photos app is, literally, unbelievable in its responsiveness.
Android is fast, but the UI feels more sluggish and faster processing doesnt fix that.