Can we PLEASE stop repeating that "30-40%" return figure? Even the source article says it only applies to SOME Android phones, which isn't really that big of a surprise - some phones, like the Charge from the sounds of it, are genuinely crap. No decent source is claiming that Android phones are being returned en masse, however, in fact I have my own source on some information: Phones 4 U (high street store in the UK) tell me that 40% of their monthly contracts were for Galaxy S II's, and that the return rate on them was "exceptionally low".
The problem with this is that I can't honestly recommend my family members to go get Android phones... they can't afford legit iphones (they're all on family or prepaid) either.
I spent about 3-4 hours researching what Android phones were available to what carriers, and gave up with all the potential research I still had left to do on the dozen or so options.
The OHA (and ultimately Google) stand to blame here for not setting decent quality standards and caring for the Android brand... a lot of ground could be gained by having a meaningful certification process that takes into account actual usability.
