I think they're more like the Playskool of the PC market. The have next to nothing in terms of market share, no serious business runs Mac computers for anything the requires heavy computing. Macs are college kid computers, and that's about it, except for a few trendy adults here and there. Microsoft learned to license their OS apart from hardware, thus allowing multiple hardware companies to run their OS. This gives PCs a degree of customization that Macs just can't have.
This is happening again with phones. Apple refuses to separate their phone OS from the handset. Android is already running on over 10 different handsets from every major manufacturer and service provider. Not only does this give consumers a choice between handset style and service provider they can't get with the iPhone, Android's open source linux-based nature means the choice of apps is open to anyone who knows how to program. And Google is very open with their developer kit for just this reason.
They don't sell the best. They came up with a good idea, and locked it down, like they always do. The "mind share" as you call it isn't with Apple. It isn't even with Google. It's with developers who Google has allowed to toy with their OS freely. Not just casual app developers who write programs, but even handset and service providers like HTC, Motorola, Verizon, etc. They all have personal versions of Android that are tailored to their multiple phones. It gives the consumer dozens of options. With the iPhone, you have Apple's one way, or not at all. Apple came up with a good iPhone OS, and and good handset. But they absolutely refuse to open things up to customization from the user and developer end. And it is going to cost them. Again.
Here's a few scenarios.
You want an iPhone like phone, but you insist on having a physical keyboard. That rules out Apple. But there's more than a few Android phones that have them.
You want an iPhone like phone, but you don't want ATT service. Maybe you have T-Mobile or Verizon. That rules out Apple. Good things both T-Mobile and Verizon each offer multiple Android phones.
Let's say you just want to buy an unlocked phone you can use with whatever service you want. Good luck getting an iPhone like that from Apple. Of course Google will be happy to sell you their own Nexus One that can be used on any carrier.
Oh yeah, Android 2.0+ supports flash in the browser.