Because there is nothing Apple has to offer that Android does not already have, yet they charge more for the same (or worse) hardware. That's probably the main reason.
That is not entirely true. Sure, the iPhone doesn't have as powerful a processor or as much RAM as Android flagships, but I have a secret for you. It doesn't need to. That is one benefit of Apple's strategy of intergrated hardware and software. That level of optimization costs money to achieve. It isn't free. One area the iPhone shines above nearly every single Android phone is the camera, which is hugely important to a lot of people. Outside of possibly the S4, Note 3, and G2, you aren't going to find a camera on an Android phone that is as reliably good in as many situations as the iPhone's is. Sure, there are Android phones that are as good as or better than the iPhone in low light, like the HTC One, but it struggles in other situations that the iPhone has no problem in. And as I said earlier, I personally would take the iPhone over TouchWiz and possibly over LG's software.
The thing is, Apple is charging people more for a product that delivers less. I think that is a big part of why a lot of people don't like Apple. Apple is charging you for an image, not for a smartphone or tablet.
Delivering diffrent benefits =/= delivering less. One example, big apps are almost always iPhone first. If playing the latest social game with your friends when it is first popular or being able to get the latest hot social sharing trend first are important to you, the iPhone will be a superior experience to Android. It took a year for Instagram to get to Android. Lots of social games launch on iOS first. Many are not as good once (or even when launched at the same time as iOS) ported to Android because the developer doesn't put in the work to optimize for Android. These things are important to people and until iOS apps being first and/or superior is no longer the norm, the iPhone will be better for people who this is important to.
Also, it is not immediately apparent to non-tech users just how restrictive Apple is. And once they find this out, they are already "trapped" in Apple's ecosystem having invested a lot of money into it (because everything Apple is expensive). YOU might know what you are getting into, because you are knowledgeable about it. But most people are not.
How is that any different than any other platform? If I want to leave Android, my apps don't come with me. The Play movies I have bought will still be available on my PC (just like with iTunes movies) but not on a Windows Phone or iPhone. If I switch from Windows to OSX, I can't run
all of my old software, there will be things I have to repurchace. If I go from Garmin to Tom Tom, my lifetime map updates don't transfer. If I buy an LG fridge to replace my GE, my water filters I stocked up on will be useless. If I switch from Xbox to Playstation, my old games won't work. This is just a fact of life, not an Apple only negative.
Therefore it is wrong to hate them for exploiting it?
Dont ask the question if you don't want to hear the answer.
As for rage.... Android's soaring marketshare at Apple's expense mitigates it a lot. Though I'd be lying if I said their bankruptcy would not make me chuckle.
Yes it is wrong to hate them for exploiting it. They are a publically traded company, and as such it is their responsibility to maximize share value. Part of that is filing patents and defending those patents. Apple may be the highest profile company doing it, but Nokia, Motorola, Samsung, Tivo, and many other tech companies do the exact same thing. It is their fiduciary responsibility as a publicly owned and traded company. If a company doesn't defend its patents or takes other action that blatantly goes against maximizing profitability, their shareholders can bring a lawsuit againt the company. If you don't like how Apple and other companies defend their patents, go after Congress to enact meaningful patent reform. NOTE: All this only applies to companies actually producing products. Patent trolls (those who make their entire profit off of buying patents and using them to sue people while not actually producing anything) can go to hell.