Have you ever been in a 2-3 person startup? You have to make a choice and do something exclusively. iPhone is the right choice if you want to get to market and start talking to users sooner. It's also the right choice if you want to raise money and get tech press in the Valley (it turns out virtually no investors or bloggers have anything but an iPhone).
Let's not even talk about Android device fragmentation, which I can only imagine is a serious problem. The difference lies in that while Androids may dwarf iOS installs in terms of units sold, the iOS platform dwarfs the Android in terms of the size of the market of people willing to buy apps.
I can only speak for myself, but developing for Android is a nightmare compared to developing software for iOS. Different behaviour amongst different Android devices makes it really hard to provide a consistent user experience.
There's more to it, but when I hear that I'm reminded of web site "designers" that only use photoshop and focus/obsess over pixel-perfect layouts and font-sizings, to get everything to match exactly what their original photoshop 'design' looks like on their monitor, ignoring the variety of browsers/devices that may also visit the site.
Right, so I get into the "private beta" and go to the link in the email. It gives me a popup saying, "Please use an iPhone to install this app."
Meanwhile, on their homepage: > Access from anywhere - on mobile, email, or the web
If having an iPhone is a requirement of using your website (which I assume functions perfectly well on its own), you're doing it wrong. If the website is merely a way to view (but not edit) your content, then you're REALLY doing it wrong.
Also, why are people still developing exclusively for iPhone? Last quarter there were four times as many Android phones sold as iPhones.