The free software movement needs to make something as interesting and as compelling as what Apple built instead of just complaining about what Apple built. Make something beautiful and easy to use and people will use it.
On a personal level, I don't want free software for my phone. It's too much work for me. I want my phone to just work, I don't want it to have viruses, I don't have the time or inclination to hack around with it and I'm a developer, I don't care as a consumer if that means that "free" software is given the boot from a device to make this happen.
For my $:
Good design + No Viruses > Free Software
That's not true for everyone, and for them Apple isn't the right product.