Most smartphone users have never installed a single app
Yes, apps are huge, but most smartphone users have never installed a single app.
My wife is IT literate enough that she's the person other teachers in her school go to when they have questions about their computers, and she's had an Android smartphone for almost a year. A couple of months ago, just to see what would happen, I suggested that she try to install Angry Birds on her phone.
I watched her try for 20 minutes straight without success. She had no idea that there was such a thing as the Android Marketplace app - her first instinct was to type "Angry Birds" into Google (not such a stupid thing). But nothing at all that came up was any help whatsoever with installing it.
This may have changed now that Google have (finally!) web-enabled Android Marketplace. But the point still stands, most smartphone users haven't installed a single app on their device.