A recent study by William Powers of Baird Research has revealed that a whopping 86% of developers think that Android fragmentation is a problem. While only 24% of devs described it as a "huge problem," it doesn't discredit the fact that the overall percentage was so outrageous.
Venture capitalist Fred Wilson still recommends developers write for Android before iOS, as he predicts that iPhone vs. Android is just a remake of Macintosh vs. Windows. Of course, there are a certain number of developers that write for both platforms, many of whom found that it was easier to get exposure on iOS than Android, citing the amount of "junk apps" in the Android Market as the reason.
So, from a developer's standpoint, it looks like Google is on the right track by cracking down on fragmentation. Past that, the only thing left to do is take control of the Android Market to ensure victory for our little green mascot.