What saves Apple is their app store. There is absolutely no doubt that the Apple App Store is the best there is. The apps there are unrivaled by Android. There is simply no equal. As for the iPad Mini - it is way over priced. They should have done better.
Yeah, that is changing very fast. Android is increasing rapidly in terms of market share, so developers are pushing hard for apps on Android. I would say the Apple app store has the upper hand now, but that won't be true soon, as developers can't ignore the Android marketshare. There is money to be made on both platforms. Now, Windows Phone and WebOS are where the app ecosystem really needs to improve, because neither platform has any significant markets share, and that's sad (not so much for WebOS - dead, but for Windows Phone).