Eric Schmidt bought a Blackberry clone and turned it into an iOS clone after seeing the iPhone. You are right that he shouldn't have resigned, he shouldn't have been given that opportunity, he should've immediately been shown the door.
Ahh, this old geek dream urban legend. You do know Schmidt recused himself from all meetings involving the iPhone while he was on the board of directors, right?
After all this time, considering how sue happy Jobs was over Android's apparent theft of IP, you think he would've publicly lambasted Schmidt and sued him to kingdom come for abusing his position. Yet ole Jobs never had a bad thing to say about the guy, even before his death.
Lest we forget, the original Android phone:
Ahh, this other long since negated piece of bad information. You do realize this was only one Android model, right? The foundation for a full touchscreen oriented Android OS had already been laid.
...and it's not like they'd have to change all that much anyway even after iOS blindsided them. It's all ultimately just another method of interaction.
All you're doing is fighting the tech war using bombs that had already been diffused over two years ago.