I don't know if Google should necessarily say what a vendor can do with the OS, but they should make perhaps more stipulations on the way the carriers use the branding. Remember that if they put too many restrictions in place then it might also affect other areas of revenue for them, such as the marketplace, namely in ad-sponsored apps.

As someone who'd like to use Android in the future, I don't want any restrictions. But I won't be using it in a handset. Nor would I ever expose the fact it's running Android, so there would be no OS branding apart from whatever custom UI I have sitting on top of the base. No app market, etc. Basically just using it as a nice free embedded OS with decent support for all kinds of technologies already baked in.

I think you're going to see feature phones going this way as well.