Good point on your first sentence, but I disagree with the second. From the keynote they put on yesterday, Google has made it clear that they'll put a ton of effort and innovation in. They basically called out Apple the entire time. Apple has dominance now because of their huge head start and loyal fan base, but it's looking like Google is quickly overtaking them in innovation and features. Apple will always retain a loyal fan base, but I think they're going to need to step up in adding new features to avoid losing more customers to Android, and that's without considering the factor of people getting annoyed at Apple's paternalist (or "draconian") philosophy.
"but it's looking like Google is quickly overtaking them in innovation and features"
Such as? The announcements yesterday looked as though they'd finally caught up to iPhone 3.0, including the huge cheer for "Update All".
Turn by turn directions, multitasking, tethering, OTA streaming of any music you've purchased, total phone back up including apps and data, you were saying?
Also, just because Google said Android can do it, doesn't mean carriers are going to let manufacturers enable that feature on the phone. Odds are, to enable WiFi tethering in production model phones, you will either have to a) Pay more or b) root your phone, sideload an app/firmware.
I think you're only partly correct. Android itself isn't the important piece for Google, it's an open ecosystem for their advertising. In the keynote yesterday they said something about the importance of a future not "dictated by one product and one man". I'm willing to bet Google sees the avoidance of that future to be of vital importance to the survival of their company.
Maybe Google will make money some way, down the road, directly or indirectly from Android. Maybe not. Windows was knowingly building a huge business.
Android, Docs, Chrome or any of the other not directly search or advertising Google activities may be important at some stage. Right now they aren't and it isn't clear that they will be. I don't think Google is treating them as such.
What I was saying is that there will be a big difference in drive between Android 2012 & Windows 1995.
You are absolutely wrong. Google makes money on every web search performed on any device. The point of Android is to get users to do search through Google and make the platform ubiquitous, and right now they're making money hand over fist with that.
Same thing with Chrome. Chrome OS device will default to Google Search, GMail, and many services where they make money directly. It's brilliant, and it's working.
Mobile search advertising isn't making much money yet. I doubt Chrome (browser) has made a noticeable difference in Google Search market share. Google don't make much on Gmail or docs.
Look, I'm not saying these are not good strategies for Google. This thread was comparing MS Windows/Dos in the early 90s to Google Chrome Android 15-20 years later. Google is (probably) not building the next biggest business via Android/Chrome. At best, they are strengthening their current (best) business and taking a punt at some new ones that have a remote chance of being businesses in the same class as Search/Adwords, Windows or iphone/ipad.
Apple is building the next great computer business via iphone/ipad, or at least making a very directed effort with all their weight behind it. They are making money on it, directly, now. They stand to make a lot of money on it for an quite a long time.
All I was saying is that there is a difference between these two positions.
Apple is fighting - no doubt about it - but it may be fighting using the wrong strategy. If jobs is really serious about saving the world from viruses, third party apps and porn, he's going to lose a lot of customers.
Android is like a side project. They aren't going to fight for it like Apple will.