Your question of who the Android is meant for has a very simple answer. It's designed for people who want a smartphone, but aren't willing or capable of spending enough for an iPhone. Also Apple haters as noted.
It was high-end last january.
It's useless to compare overpriced flagship phones and say that android phones are as expensive as iPhones. It's just not true. It's like taking a high end desktop PC with the very latest hardware and comparing it to the price tag of the iMac and deduce that PCs are more expensive than Macs.
I could spend more, but I would constantly worry about losing or breaking it or having it stolen. And when I relax my spending criteria a bit, chances are for 200 to 300 EUR an Android phone would still be a much better value than a used/outdated iPhone.
Btw., Nexus S is around 260 EUR today (retail, unlocked, no contract).
Your level of ignorant is amazing.