You're drinking the Apple Kool Aid, Jack, and it seems you're not following the news. Android has now overtaken iOS in the tablet space, too, and with the ridiculous price-point of $399 for the iPad mini, that trend is only going to intensify now. Hell, even the $229 for Nexus 7 isn't exactly a low price, but $399 is another stratosphere.
Apple are now pricing an 8-inch tablet as if it was a 10-inch tablet. That's a fact. They've now firmly lodged themselves into the
luxury niche. Retaining the position of the market leader while operating from the luxury niche, is impossible.
Android will do to iOS what Windows did to Mac OS. It "works" for Apple, you're saying? I don't think so. Apple nearly went bankrupt, employing that strategy. If it hadn't been for a string of new Jobs inventions (iPod, iPhone, iPad), they'd be gone by now.
Btw, stop thrashing Android, please. Based on my impressions of Android 4.3 from the new Nexus 7, it's an outstanding, flexible OS. I definitely prefer it over iOS -- not to mention that it now
looks much better, too, compared to the hideous iOS 7!