Well, to consider a parallel market: I have bought several MP3 (MP4) players from China. For the price - say $25 - I got a player that have a lot more features (like video playback) than i.e. the more expensive Ipod shuffle (like... shuffle). It is not a question about either price, software, or quality, it's a question about d) all of the above - what do you get for the money.

I have to say though, if I am to buy a telephone like that, it has to give me some features that I do not expect from a chinese Mokia phone. Most notably localization. A linux distro based phone could do that.