This ignores years of terrible phones between the Razr and the Moto G/X. For a while they even had the advantage that a large portion of the market treated Android and the Droid brand as synonymous. Not every mistake was entirely of their own making (their partnership with Verizon has seemed and still seems intent on ruining every bit of their reputation), but a large part of it was. It had almost nothing to do with cheaper Android devices undercutting them.
The Droid brand is Verizon's. It just so happens that the most famous Droid branded phones, including the original, were manufactured by Motorola. I'm of the opinion that all Android phones on Verizon are terrible, Droid or otherwise, and have learned to stay away despite their superior network.
The Motorola Droid was an excellent entry into the Android phone market. I switched from the original Android phone, the HTC G1 and pretty much everything about the Droid was better. I hope Motorola survives as a smartphone manufacturer if only because I can't stand HTC/Samsung hardware.
