In diversity, certainly, but the way I see it, the same shoddy manufacturers that turned out phones with different OS previously, are doing the same now with Android.
HTC is the only company, so far, that actually seems to be placing an emphasis on design, and slightly more emphasis on quality and performance, but so far I am disappointed in the Motorola offerings, as well as those by the usual Taiwanese and Korean manufacturers.
When I say 'performance', I don't talk just specs (i.e. how 'fast' or how many 'megapixels', but rather in how well the individual features perform and deliver).
Speaking for the USA, consumers on Verizon, Sprint or T-Mobile do not have many choices, except to pick Android phones.
Compare Android share to markets where such a choice exists, and the numbers look different, when you look at *SOLD* and used (not shipped) phones.
Japan, and Finland are my favorite examples :
Japan: iPhone enjoys a 72% marketshare in a market traditionally dominated exclusively by local phone manufacturers.
iPhone Market Share in Japan Surpasses 72%
Finland, the home of Nokia : iPhone grabbed 20% smartphone marketshare in a market previously ironclad dominated by Nokia.
iPhone grabs 20%+ smartphone market share in the land of Nokia
Korea : Again, in a market traditionally dominated by domestic products, the former market leaders have been aggressively displaced by iPhones
iPhone Best Selling Phone in Korea, Samsung Hit Hard
This is bound to change and fluctuate (as these numbers are wont to do), but so far the drops in iPhone share over the past 2-3 months was caused by waiting and expectations for iPhone 4, so I expect Apple's numbers to rise over the next 6 months, as iPhone 4 expands to all international markets again.
Obviously, during this time more Android phones will be released, but realistically, just like Samsung's, LG's and Motorola's prior offerings, I expect them to tout features, but fall short on delivery.
I mean, look at the EVO or the Droid -- they tout large cameras, but invariably delivery sad looking quality pictures (one second shutter lag - nice going Moto), and even worse video.
I had high hopes for the Nexus One, as the one phone to show other manufacturers how it's done, but sadly, it has only demonstrated that Google's 'designers' are marketing based, and not quality oriented (soft-buttons that don't work? Really, Google?).
I also had hopes for the HTC Legend -- same issue, cobbled by shortcomings and compromises.
I have no doubt someone will release, at one point, a phone able to compete quality wise with iPhone 4. Probably some future product, coming from HTC, sometimes in the next 2 years, and it will probably improve upon Apple's design by featuring reception that doesn't work at all, ever. ;-)