I will say though, theres really not that much to fill the app space. I agree, it should be bigger on principle, but there just really aren't that many great apps.
I have a 32GB jailbroken iPod Touch and I have hundreds of apps (and many, MANY good ones). From various game categories to productivity to music to travel, all were paid or free. Thanks to some "app finding" apps I got them all at the right time, nothing pirated. I'm very surprised at the overall quality of the Android offerings. It's quite disappointing.
Maybe I'm remembering it incorrectly but didn't Charbax say in one of his earlier videos (maybe a beta of Froyo?) that the app limit was eliminated in the soon-to-be 2.2 upgrade?