I didn't (and wouldn't) say Android is badly designed. It's OK, and I'd even say certain parts are beautiful, but it's quite uneven and some parts do actually border on ugly. It is certainly good enough for me, but for most people I think the bar has been raised to stratospheric levels by Apple and people now have really high expectations of the visual experience they should get from phone OSes.
I don't know about you, but Android 2.2 is pretty beautiful. I had an iPhone for a while and personally feel the design of Android is significantly more natural to me. Best of all if you don't like how something behaves, you can usually swap it out.