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Well, specifically the Android OS actually. Google isn't producing devices, just powering them
I cannot help thinking that they are going to need on hell of a badass killer application or feature because when the iPhone reaches 100 GB, has 3G, HSDPA, GPS and other new features, it's going to become pretty awesome and, as one of the many carrying high spec phone and an iPod, convergence is my nemesis.
Unless Android does something incredible this could be difficult for Google, unless their business model of free services to users based on ad revenue spells the death of mobile contracts and phone bills as we know them (that WOULD be worth it!).
Once the iPhone becomes a high spec phone I don't see anyone stopping it.
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