With iOS:
* there are no phone models available that allow to root your device without jailbreaking, a process that voids your warranty
* you cannot install software from third-party sources, unless you jailbreak it
* as a developer you cannot distribute software from your website, unless you want to limit yourself to nerds that have jailbroken their device
* you cannot build your own device with iOS on it
* certain classes of software, like phone number blacklists, are banned from the iTunes store, but are allowed on the Android Marketplace
* the source code for iOS is not available. This means no forks are possible (e.g. the Kindle Fire)
PS: don't confuse openness with convenience. Unlike Windows, if Google is doing such a poor job, you can always fork it, which is why Google has to play nice. Also, I love my Galaxy S and I only paid $100 for it. And I also own an iPhone 3GS which is gathering dust.