A few months ago I started selling cell phones as my company added it to the electronic's section. So when the store is dead I play with the booth phones, and research stuff, mostly on Cnet. Thus I've learned a bit about the industry, although I'm no expert despite what they call me at work.
Unless Jobs thought he could have brought down Android with lawsuits, which is extremely unlikely, I don't see a way they could have done it. Android has a lot more hardware choices than iOS, which is something many people want. It's also something Apple would consider 'diluting the brand', so they simply won't do it quickly. With what Apple as a company has been doing, I'd wager (although not much) that a continued barrage of lawsuits against everyone tied to Android would have been the tactic of choice. Although many companies have been litigious of late, spurred on by a messed up patent system and some companies being nothing more than patent trolls (a tactic that Apple has both emulated and lost to recently).
There are a few other differences as well, and while I really like the iPhone 4s, I much prefer Android, especially the Bionic. It's web surfing is simply much, much better, and I like bigger screens. So do a lot of people. I simply don't see a way that Apple could have 'destroyed' Google over this. Hopefully others inside of Apple would have been able to temper Jobs' haterage towards them.
Oh, and the new smart Razr and Galaxy Nexus (if you want a full 720p screen) should be out soon if you're looking for awesome phones to switch too (depending on your carrier).
As far as lock in deals ... well ... that's part of the whole problem. Amazon, Google, Apple, Netflix ... they are *all* beholden to the content providers in the area of digital content. Apple is hardly a standout in this regard. App store ? Not really sure how that is appreciably different than Google market and google experience devices. You tell me. 
