I getting Android news from all ends today. NYT has wrtten and article about how the Android App Market is stepping up to the plate. Looks like the there are about 109364 apps in the Android Market according to Androlib. Also according to Androlib, 86.7% are Applications while the other 13.3% accounts for games.
A better app can go a very long way: a higher quality app will translate to higher user ratings, generally better rankings, more downloads, and higher retention (longer install periods). High-quality apps also have a much higher likelihood of getting some unanticipated positive publicity such as being featured in Android Market or social media buzz.It might be different from developing apps for monolithic platform like iPhone but I do not see that much of a issue as stated by the NYT article. Yes there are many devices, but when we developed our first app, we did not even have a single device, we relied on the Android emulators.
With Android devices selling like 200,000 a day, there going to be a huge app hungry users, be your app free or for pay, one will certainly be able to reap in benefits with a well designed quality Android App.
Android Developers Blog: Improving App Quality
Stats from Androlib