[toddheasley]

Gruber's assessment is more reasonable, but watching the video, I completely fail to see the controversy. In context, Schmidt's response seems almost humble, and he seems to be addressing two separate concerns raised by the question: 1) The actual challenges for developers (in terms of both the software being good enough to deliver killer apps and the store being able to generate money for developers) and 2) The perceived uncoolness of Android/perceived lack of developer interest

On the first point, he's conceding that Android, up until ICS, fell short. On the second point, he's saying that, whether Android suddenly sparks developer interest or not, it's gonna be on so many devices that developers won't be able to say no (to the fame and fortune). I can't say whether he'll be correct, but I think he could be. It's an honest, if not direct, answer to the question asked -- and doesn't come across as a threat.