Android isn't exactly open. It's free to take and use, but anyone using it in their devices can lock it down however they like. If you need an example of that, look no further than the Moto Backflip. AT&T borked that device in classic style by taking Android, stripping out the best parts, and then locking it down.
Don't get me wrong, I like Android, but it isn't as open as many people think.
I believe the fault lies with the advertising getting us used to thinking that this device is to be open, then *poof* it's not. Maybe they mean open to the telcos to lock it down as they wish?