I think Google goofed in a major way in this regard - from the view of developers (result being an inconsistent and more complicated payment scheme that Google is having such difficulty expanding to more countries).
Unfortunately there is no natural pressure on Google to reform itself (to align with developers). So it is a dictatorial situation (as I noted earlier Google policy of non-response on e-mails and “axe hanging over the head” type of policies towards developers - sure many are probably spam app developers maybe - but the perception that creates is that of “terror” i.e. it could be argued that Google deliberately employs techniques which are designed to invoke a “terror” response in the developer - so they remain in line - within a “hazy line”).
This strategy is required by Google - because they have adopted a policy of low human contact - and automation (compared to Apple of human-involved review of apps). Google thus can beat Apple in that area - but it has essentially adopted the policies of the IRS - i.e. “we cannot police this complex world” so when we do act, we will do so with “extreme prejudice” - as is the common public’s perception of the IRS audit.
I don’t know how long such a high-automation process will work for real humans - or is the intent that eventually Google will be able to whittle away the developers to big name outfits - and that should be sufficient revenue. In the meantime let the developers duke it out - yet the reality is Google has given NO thought to how a developer could be given the environment to succeed. Surviving developers will then churn out pachinko machine type apps - which users are glued to - and paying hand over fist to pay. Essentially a type of addiction (“whales” paying $1000s) and Las Vegas casino environment.
An important factor for Google’s hands-off decision was also that they probably wanted to experiment with what works for the App Store and what doesn’t - but they didn’t want to spend their own money doing that - far better to let developers do that - both the ones who survive and the ones who fail will have contributed to the experiment - but only the ones who succeed will get payback (usual entrepreneurial).
Apple has devoted itself more towards the user experience - and probably spends a huge amount on testing apps (compared to Google).
A big part of the justification for Google’s approach is probably the mantra of “open-source” - that suggests that since Google is open about it - people should be aware that things are going to be a bit threadbare.
The problem is that who is the beneficiary of that threadbareness - the open-sourceness of Android - has little impact to the bottom line for developers or users - what Google’s hands-offness (“we opened up the OS - what else do you expect us to do”) however does is it creates a parched environment - one which is palatable to developers only because of the “potential” for the platform (as an open source OS and which is expanding heavily - esp. at the low end).
A more positive view of this however is also that it is still “early days” in the Android ecosystem - as a sustainable survival model does not exist for apps - this means there will be considerable flux - and this would be an opportunity for new entrants - as well as keep the existing developers on their toes.