Yeah, they are going to have to address the privacy issue, but Android is still fairly new and will evolve. It will have growing pains Apple doesnt because of its open nature, but it also has some things to offer that Apple wont because of its closed nature. It will be fun to watch as things play out.
There is still the big unknown of the new Windows 7 Phone due out this year. They are finally requiring a hardware graphics processor and some other constraints on hardware, so this should solve the lag issues they have had in the past. The new platform has potential, but they have an uphill battle ahead. They let Windows Mobile stagnate too long and are now WAY behind the curve.