Androids problem? That's the most open ended question ever asked. It all depends on what you want to do with the phone. If you are a gamer, than Androids biggest problem USED to be lack of games, that's all changing with the newest crop of dual core phones coming out. There are a lot of nice games out there already, and there's a whole lot more in the pipeline. A general problem for the Android platform is the "F word" meaning, fragmentation. Google comes out with new versions of Android so fast, that a lot of phones run on different versions of Android, so it's hard for developers to make their apps compatible with every phone. Also, unlike Apple, where there is only one iPhone (any app that's too intense for the original iPhone or the 3GS just can't be purchased on one of those phones) is the wide variety of hardware that Android ships on, anything from your entry level small screened weak cpu power phone, to your high end super smart phones, to tablets, it's quite a challenge for developers.
The main questions you should ask yourself are:
1. What carrier are you on or do you want to be on?
2. What do I want to do with my phone?
3. Do I need the latest and greatest phone out there?
If you want the latest and greatest, don't buy a phone right now, wait until all the major trade shows are over and all the newest and coolest phones have been announced and then make your decision. Read lots of reviews, watch review videos on Youtube, educate yourself, that's the only way to make the right decision on what phone to buy and whether or not Android is for you.
Android in itself doesn't need to hide from any other smart phone, it's the fastest growing platform what major support behind it. It's just as capable if not more capable than an iPhone.
Not sure if I answered that rather broad question of yours, if you could ask more specific questions, we could help you more.