My nameless person familiar with handset sales for multiple manufacturers says that your nameless person familiar with handset sales for multiple manufacturers is a load of ****.
...but you're one of the Apple sheep and would believe such fodder from someone who won't even tell you his source.
Give me a freaking break. The iPhone 4 return rate is above 1.7%, it's just that Jobs would never admit that publicly. Jobs has been proved to be a lying sack of **** a dozen times already. I especially love the way he blames his users instead of his product when there is a problem. The "antenna gate" proved that to be true.
That said, I'm sure there are models of Android phones that do have higher returns rates. Especially those where they try to make a phone so cheap that is ends up being a POS. Of course, if you get your phone for free, then you probably got what you pay for.
Pay ****, get ****. My Nexus One is still better than most phones on the market today.