Android isn’t summer camp for handset vendors and not everyone gets get a trophy for showing up. Google is treating partners equally, but will not slow the rate of innovation so weaker players can keep up. By constantly raising the bar, both in terms of reference devices and software, Google aims to keep innovating and drive that innovation as a differentiator. Google wasn’t looking for volume sales with the Nexus One, it was looking to raise the hardware bar – and arguably the best way to do that is to do it yourself.
Of course, if you build both the hardware and software yourself, it is a different story altogether.