3. It doesn't seem you understand the concept of an open platform. Google doesn't need to "be careful" about anything, the market will decide.
Uh... which market? The cell phone market? I hate to break it to you, but most people don't buy their phones after considering whether or not the apps they might be interested in will be running natively or using an intermediate platform. To most people, phones are about communicating status more than anything else.
2. Android does do h.264 and most Android devices have hardware decoders.
3. It doesn't seem you understand the concept of an open platform. Google doesn't need to "be careful" about anything, the market will decide.