Not all is well in the land of open source. The first open source cellphone is no longer produced.
Read more here. What does this say? People are buying iphones like crazy, no matter how bad Apple policies are (locking the device, control of the software) and how closed and tightly controlled their device and their software is. It seems that the general public does not care too much, as long as they have the most fancy device.
On the other side not all is dark, lone open source riders have ported Debian to G1 Android smartphone.