Wait, people steal software? :o What ever will we do!
Pricing apps too low really is lame, but with exposure to hundreds of millions of people, apps can be priced low and successful apps still make money. As sproingie described, there is no stopping it. As a result there are tons of quick to market, shitty apps. It sucks, and of course it would be better if it were easier to make tons of money for building high quality software.
I agree that closed is better for business. This shouldn’t be some big surprise that we are just now coming to realize. Does that mean Android should be closed? Hell no, IMO. I do wish they made it harder for piracy, exposing more to the app so checks can be placed inside the app, making it much harder to strip.
Go build apps for iOS if making the money is of utmost importance. Note it isn’t all gravy over there either, as you have to complete your app 100% and then hope it gets put in the store.
None of it matters, really. Be smart, design around it. Build an online game where piracy has much less effect. I know I’m being a romantic, but I believe if you build something great that you can ultimately succeed, especially with a little forethought about the market.
@princec, re: JellyBean, a tool will be made to strip the encryption and the app placed in an alternate market where it is widely available and can be side loaded on to stock devices.