Nobody's putting words into Gruber's mouth, he said "there will never be an Android phone that people line up for like they did for Windows 95". Taking it down a notch from there he meant "there will never be an Android phone that people feel extremely passionate about".
People lined up outside my local Sprint store to get the Evo 4G, but it was nowhere near what you would see at an Apple or AT&T store on iPhone release day. It's hard to measure passion for Android phones because on one hand there is the hardware, and the other is the Android platform. Aside from the Evo with a front-facing camera and 4G, or the Moment with a slide out keyboard, or the Droidx with a 4.5" screen, and a few other stand-outs, most Android phones are pretty vanilla hardware-wise. Android as a platform is great because it is free and open source, and has a lot of apps, but it is rough around the edges compared to iOS. It is easy to see why people are passionate about iPhone, because the hardware is amazing and the OS is polished. I love my Evo 4G, but I wouldn't love other Android phones like the Hero that are just generic Android phones.
That's because there are more Radioshack and Best Buys in a city than there are iPhones. I am pretty sure The Evo sold out for several day after launch.
He's wrong on both counts already.