So the core of it is "Appleās proprietary technology and the massive price tag attached to implementing it across the Defense Department."?
Whats proprietary about it? OSX (which iOS is based off of) has BSD at it's core. It's part of the reason that Jailbreakers have been able to do what they do. What's the massive cost? Not the phone...it costs the same amount as droids. If it's the development, the developer program is free. Anyone with a mac can make an iPhone app if they choose. As far as apps are concerned and the apple review process, iOS 4 provides for enterprise app delivery independent of the iTunes environment.
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