What makes you think it's a better system? And what sort of people are those others who want to get the Android? Are they tech-focused? Because it seems to me that Android has the advantage there, but that it's got nothing that appeals to consumers. Not like the iPhone has.
What do you think the iPhone has that Android doesn't have? As someone who has used an iPhone and now owns the G1 I can tell you that they are incredibly similar. A friend and I were comparing the two side by side. Most of the applications are comparable and in some cases we both had installed the same exact applications from the respective App Stores. I doubt most average people would know the difference if they were using Android in an iPhone case or the other way around. The two platforms have far more in common than you may think.
The Android SDK allows for some more possibilities than what is allowed on the iPhone, but this seems to be purely a business decision on the part of Apple. As far as features that appeal to consumers - branding and fads aside - I think it's pretty much a wash. The big difference is Apple's far superior marketing.