precisely. in fact, it couldn't have been said any better.
Asus, Samsung, Google, Microsoft, Motarola and RIM aren't competing against a physical device. The device is only the gateway. A really nice gateway, to be sure...but they must compete with the ECOSYSTEM. The apps, the games, the content, the 3rd party peripherials, car cradles, speaker decks, etc. The ecosystem that Apple has spent a decade slowly building up. Anyone who doesn't understand that is on the wrong track for understanding how Apple can be beaten in their chosen spaces.
People buy Apple products for the same reasons they buy Glock handguns: they're consistently among the best at what they do, they have an endless array of 3rd party products and good prices, they're well supported by the manufacturer, and their plentiful.