There's no way that Google would not have known or had an idea that the current situation was going to transpire. No one can argue that Android itself isn't open since you can freely obtain and modify the source code. The very definition of open pretty much.

I've always argued that most Android products are not themselves open. Yes, you can generally install unapproved apps, but you can't modify the OS or pre-installed apps.

The bottom line with regards to Android is that it's all working out well for Google. They haven't released it as a gift to the world out of any generosity. It's a business platform and a damn fine one at that. Their core business is advertising and Android is the best billboard ever made. In fact, it's billboard with a direct line to their bank account. Like a deposit ATM built in.

For all the work Google are doing, their platform is being adopted by industry thanks to its low entry fee (time is still money) and gaining a wide install base thanks to device and brand diversity. It's not as cohesive as iOS and it's not necessarily helping any single licensee to gain the leading position in the market, but they're still selling devices while eliminating a significant amount of development cost. And it's doing for Google what it was designed to do. Bring in a shitload of ad revenue. Everyone's happy.

I'll say it again... When it comes time for me to work on a consumer device that needs a small OS where I also need graphics capabilities and the ability to write smaller apps for launch or a later release, I'm definitely choosing Android. It's pretty much a no-brainer. Just look at the Nook from B&N as a perfect example - at least at launch time it was.