The dominance of the iPhone is easy to see for the near future, if there is a feature that Apple is missing, it will be an easy software update for them... like horizontal typing and cut-and-paste I am using to write this article.
On the other hand I see a dozen of manufacturers coming up with Android in the next two years, what's more important there are tablets and laptops with Android out there and that excites me as a developer -- my Audi navigation system would greatly benefit from Android, too!
To me there are two things that are crucial:
1) Apple patents the coolest of the user interface features which is good for them, but makes it impossible to have "pinching" on the Android.
2) it is possible to replace any application you don't like on Android with anything else anyone else wrote, so there is possibility of some great breakthroughs
3) I love that Android applications are written in Java, but that is my subjective opinion.