I definitely think we still need the Nexus phones. It's Google's baseline for how they think a phone should be and to showcase new features that others may not want to adopt right away. For example they had to make the Galaxy Nexus to show off the softkeys.
I personally think Google's baseline and how they think a phone should be is irrelevant.
Google's baseline is on-screen keys - I don't want them, I want the full and complete 100% of my screen resolution available at all times, not when the soft keys say I can have it.
Google's baseline is no uSD card slot - they want everybody to use streaming cloud service. The United States' cellular market is not designed for that, and the pitiful amounts of included storage is quickly eaten up if you're a gamer. Besides, I have 48gb of total storage on my Optimus G Pro (32 internal and 16 external) and have the ability to have 96gb. I don't need to sync, or download or copy or anything, if I move to a new phone that uses uSD cards - I simply move my card over with my SIM, and all my pictures and music are already there.
Google's baseline is no user-accessible battery. This is entirely unacceptable. I carry a spare battery for my OG Pro in my wallet. If I get low and I'm not near a charger, I simply swap batteries. Not only that, but it's worth it to not have to be tethered to an outlet with a 6' cord.
There's a whole host of other things I don't like about Google-stock Android, or rather I should say that I like the way the manufacturer software does things better than Google-stock Android does.
I don't fault Google for pushing their agenda using the Nexus phones. What I fault them for is not offering features I want, while everybody is telling me that Google-stock Android is what I should be running, irrespective of what features I personally need or want.
Not only that, but I don't like the Holo look. Flat looks boring and uninspired to me.
HTC and Motorola aren't doing enough to keep things balanced and so I think it is definitely a good idea for Google to continue pushing out their cheap subsidized phones.
I will agree with this, though. If you're OK with the shortcomings of Google-stock Android, and the hardware itself, the cheap prices are a great thing.
The Droid sold only a few units. And even then that's 1 carrier out of the 4 in America. How many Motorola Milestones sold worldwide? Practically none. It was the Galaxy phones that helped Android take off. It hit all 4 carriers in the US and was a worldwide launch. THAT is what I call mainstream.
Please. I'd be willing to bet more people bought iPhone 3GS phones on launch weekend than the Droid 1 ever sold.
The Motorola Droid moved millions. It was so popular and became so ingrained in the general public, that up until the Galaxy S II, most people called EVERY Android phone a "Droid".
The Galaxy line truly made Android phones take over, but the Droid started it all by bringing Android into the public eye, in a big way.