Interface is the key
A phone is only as good as the user interface, be it the software or the hardware interface.
Nokia's Symbian phones are some of the most advanced in terms of features, they've had decades of development. Yet the user interface is dreadful and so nobody wants them any more.
The best GUIs on the market at the moment IMHO are iOS and WP7. Why? they're consistent across phone models and have been designed by companies who have decades of experience in designing computer interfaces.
It's why if you go onto Microsoft and Apple's websites you will see lots of developer guidelines on sensible interface design.
The problem Android has it the interfaces are increasing in complexity and power purely for sales and marketing reasons as well as keeping geeks happy. Having that one extra feature and button that the competition doesn't have. It's the only way they can differentiate themselves.
But as the interfaces increase in complexity it can result in an interface that is too complex. You wouldn't load up Photoshop to crop or resize and image in a hurry.
Word also suffers from having way too many options. Microsoft has tried a few times to mitigate this problem, but the problem is adding lots features to get sales. Bug fixes and usability improvements don't sell software.