...People want stuff that just works, stuff that doesn't require a lot of manual work or customization (example: Apple).
I agree 100%. I don't want to use the word ignorance, but I think the majority of people just accept whatever they are spoon fed when it comes to technology. Whether it be computers or smart-phones, most people don't know enough to care that the machines they've purchased are loaded with so much advertising and performance sucking bloatware that it's no wonder so many devices don't perform well.
Give the average person a phone with a straight up OS, and only the OS, and most people are gonna look at it and think it doesn't have any features. They'll opt for something with more bells, whistles, glitter, and 147 pre-installed applications, all of which look great to the untrained eye, but in actuality suck.
As long as people continue to buy phones loaded with crap, manufacturers and carriers will continue to degrade their phones with it.
If VZW would offer a pure Google phone, without manufacturer or carrier garbage on it, I'd jump all over it, but I'm not holding my breath.