Nobody likes to feel like a fool. Paying $1000 bucks for a phone when you can get a similar phone from a competitor for $100 makes you feel like a fool.
I'm an Android fan, so I'd love to know your source for $100 Android phones that can match (or even come close to) a $1000 iPhone in specs and build quality. I will order 3 this afternoon.
Even for the average user the differences are not the icon and ios. It's the consequences of the icon and ios (better marketplace, safer phone, arguably more stable and more durable, etc)