Well for one, Android apps need to be better. Then maybe people will buy them left and right.
Angry Birds doesn't even run as well. If they made it $0.99, it would've sold like mad.
As for piracy, Android piracy isn't as easy as iPhone piracy. Granted you need to JB, but once you JB, Installous and AppTrackr are like heaven. I bet for the next 2 years you won't see anything come close to that even on the Android side... and to think that Installous was already this good from the early days like 6 months into the app store...
For such an open OS, why isn't there something as EASY to use as Installous on Android? There are so many developers, it's so easy to pirate, and yet people have to navigate forums and go to Megaupload to download stuff? Really?
Ok, obviously that doesn't help the case of Google being happy or not, but this is a clear example of how much is just lacking on this OS. Our developers are too busy creating custom ROMs. That's not a bad thing at all, but at the same time, realize the app developers just aren't here.
Apple took a good share of them. You can say what you want about developers coming back of writing for 2 operating systems, but it's like putting a bunch of naked women in front of you. The good ones get taken first. The leftovers are meh. The leftover developers jumped on Android. They're not as good. To get the good ones to come back? Well they already put their prime resources into iOS. Getting them to create a good Android port will take time.
It's because there are so many free apps that do the same thing as the paid ones. Open Marketplace as we know has many good things about it and many bad things about it just like a closed one does. Google and it's partners want to make more money so of course they want to change it. Just like they changed the 24hr return policy to appease the app developers, they're doing this to appease them as well. I personally don't like them doing this as it hurts the consumers more than helps them but as always, they're a business.
Open seems to be the buzzword everytime we compare the two OSes, but honestly, this has nothing to do with why the Android Market sucks balls. Being open is not why Android apps suck compared to iOS apps.