Meh, it is just time to accept that Android, iOS and Windows RT are not a serious OSes but an unobtrusive, eye-candy cloud clients for masses. The step ahead is either to waste money on VPSes or just demand the right to have full control of the software on hardware we buy -- say Angstrom will always run Firefox without any doubt.
You're totally right there, but sadly group dynamics will make it extremely hard for Angstrom to achieve critical mass as a phone OS and have a significant amount of businesses working in its ecosystem.
I'm totally for it but it's not cost effective for me to get a machine capable of running Armstrong, then hack away until I can get it into a workable state (I'm older and busier now...) over just getting an Android, root it, make a throwaway google account so Google cannot pry on my data, and use that instead. It's still some work and some cost but nowhere as much.
If there's a community effort to make it into a click-and-install Android-wiping mobile phone OS, I'd love to help with that in my spare time. Last time I looked into it (waited for years for my OpenPandora until I gave up) Angstrom was stuck in amateur PDA land, things have moved on and we now have cheap smartphones and tables that are basically overpowered PDAs with extra features and they are available for relatively very cheap. To compete with that a massive re-focus would be necessary. Obviously there is no substitute for freedom, so the niche is there.