strange statements
It's odd that you start out saying what amounts to "The iPad sucks and gets in the way of any meaningful use, and is grossly overpriced; that's why it's better."
Fragmentation isn't nearly the fatal flaw people seem to think. Especially for special-purpose devices like ereaders and tablets, data and protocol compatibility is much more important than any unified device strategy. The problem with analyses like yours might be that it is easy to think of an individual Android device as standing in for the entire Android ecosystem and, in the same breath, using the "fragmentation" (read: user choice) of the entire Android ecosystem as an argument against a single Android device as if that "fragmentation" matters for that single device.
What the "fragmentation" really means for that single device, if anything, is that the device enjoys broad compatibility with legions of other devices, both competing and complementary, making it a more useful and attractive choice for someone interested in doing more than playing Angry Birds.