ADDED: William Saletan explains:
Old cell business model: Charge monthly fees. Microsoft model: Sell the software. Apple model: Sell the phone. Google model: Give away the software; sell ads. Google's promises: 1) Better Web browsing and other software. 2) Lower fees and cheaper phones, because the ads provide the revenue. 3) More innovation and customization. Critiques: 1) The announcement is all hype, no product. 2) It'll take forever to be produced, become commercially available, and penetrate the market. 3) Yes, we are all individual … Google pawns. Upside: Your phone will work just like a PC! Downside: Your phone will be buried in ads, just like a PC.