App count doesn't matter at all
What matters though is competition among apps and one has to say there is quite a bit of that in the Apple app store. Having one app for a certain task is one thing but having half a dozen or more with every one of them trying to be a bit better and a bit prettier and a bit cheaper than the others is another thing.
I would really like to see something like that coming together for Android/Honeycomb tablets. Looks still very bland there, sadly.