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From Apple's perspective, it sounds like quite a handy bug. Since I've been an iPhone user for 5 years, this bug makes me locked in to the iOS environment.

Given that they have established a market-distorting barrier to exit, they should be ordered by a court to fix this issue.

Same here. Incredibly frustrating.

Did you unregister your device(s)? After doing this I think people's iPhones know your number isn't an iPhone anymore and after it fails to send the iMessage it sends it as a regular message. The below link helped me:

http://support.vodafone.com.au/articles/FAQ/How-to-deactivat...

I'm still having occasional problems with not getting texts but for the most part it's fixed.

Yup, I unregistered my devices too. Will double check and follow that link's instructions.

That's odd. I made the same switch, but when I turned off iMessage on my old phone, texts from contacts with iPhones are sent correctly to my new android device.