Well...
The hardware of that thing is not at all bad, I think. And the "only 5MP" is really tiring. It has a rather large sensor and lens, a backside illuminated sensor (which is a first in a smartphone as far as I know, not that any "tech journalist" would care) and seems to take quite good macro shots. Any smartphone maker putting such effort into the camera while giving up on the MP race has to be lauded. Everybody knows that piling megapixel on megapixel is a bad thing but obviously nobody has the balls to be the first to do something about it.
The gyroscope is also something noone else thought of yet. The screen has not only high DPI, it has the touchscreen laminated to the LCD, which should help to minimize parallax problems and make it tougher. The battery seems to be really good, the design surely isn't shabby. 9.3mm is, well, good. No, the hardware is really fine.
iOS starts to suck, though. When it comes to wireless syncing and file management and the like the OS is user-unfriendly in a way that is outright un-Apple. Things like "openness" are irrelevant here, the masses don't care, only geeks care.
And can Apple fend off Android? Why, no. Never. One company with one or two devices can't fend off uncounted companies offering hundreds of phones and tablets with an OS they get for free. There are lower prices there and more options. Even *expecting* Apple to hold a majority of the market is madness. In fact, if they manage to keep a third of the market or so they will do really, really great. One could even say that the iPhone holds up that good today is either a miracle or most Android phones aren't really that good compared to the iPhone. Which Android smartphone exactly is selling bettter than the iPhone or even close?
In the smartphone market Android will become what Windows was (or still is) in the PC market, there is little doubt to that. Expecting Apple to "fend off" all other Android phones together is like expecting Apple selling more Macs than all others selling PCs.