Honda is a fantastic engineering company. In terms of drivetrain technology they are right up there with the very best (for lower capacity engines, I'd say they are better than Mercedes, but I digress). However, Mercedes (especially till the early nineties) was about attention to detail, not just the drivetrain, but each and every part that went in, was famously "over-engineered". If I may, my interpretation of the analogy:
a. Honda's focus is on the engineering (drivetrain to be specific), they are willing to do an average (nothing special, but not bad) job for the rest of the package. That includes average interiors, average ride quality, average styling etc.
b. Mercedes tries (or did try) to do a stellar job in each of those categories listed above.
So, if Android is Google's engineering, Google let's Samsung get away with a plasticky phone (I have used the Galaxy nexus for an hour and a half today). Yes, even now the feel of the phone in one's hand is not even comparable to the iPhone 4.
But the analogy falls flat because the Galaxy Nexus is more expensive on contract than the iPhone. Price matters, the pricing helps Mercedes devote resources to develop the products the way they do.
Gruber, got this wrong too. His own quote "You either see it or you don’t. If you don’t, that’s cool, enjoy your Nexus. " is correct, but it's correct on it's own, not with MGs quote.