I think that this is all it really needs to be dominant for the time being.
I agree with that, but things get murky another year out. Apple's well-earned dominance is maybe 50% apps and 50% cool/fashion. A year from now Android will have most of the important apps as well, plus maybe a few fancy ones Apple can't support currently. As for fashion, well, that's fickle and not reliable.
Of course Apple may already be one move ahead, and next year we might be arguing about tablets or E-readers or two-way wrist TVs. Maybe then Apple won't mind competition in the phone space, having once again redefined the "must-have" product.