Much of the popularity and usage coming from hardware manufacturers who had no platform of their own, or from cheap down and dirty manufacturers you've never heard of.
Adding up the sales of Motorla, LG, Samsung and HTC equals less than 50% of total Android unit sales. These companies represent the "premium" phones and manufacturers who were enabled to compete with Apple, RIM and Microsoft via Android. The other 50% of Android phones are unheard of models from unknown manufacturers, in Godknowswhereistan.
In a way, it's kind of good that a single OS can run on everything from a free phone to a premium model, but the feature set and hardware is hardly standard, leaving "the Android experience" largely without meaning, if not in fact ultimately damaging the brand.
I'm not seeing the branding win when Android can mean the OS on a flagship Motorola phone and the OS on $10 knockoff phone.