It's called good business. Why aim your future product at the dying competitor? When the iPhone came out the UI was quickly seen as the new high bar so everyone took whatever they were working on and switched gears UI wise.
Yes! Correct!
I believe the Japanese have an expression. Business is War.
What Google did was good business. Like most people, they saw the iPhone and did not see a smartphone, but instead saw the basic handset from 10 years in the future. The future path of Android was instantly adjusted to address this new thinking.
This instant change-of-direction should be held in contrast to Nokia and Microsoft's almost total failure to respond to iPhone.
So Google should be applauded for this instant response. But...
This course-change was inevitably going to sour their chummy relationship with Apple. Up to this point, Google and Apple had co-existed without treading on each others toes. Google pursuing search and advertising, Apple pursuing hardware and music. A polite genteel dance was ended with a fairly heavy stomp on Apple's toes.
The retargeting of Android at the iPhone was, as far as Apple was concerned, an opening salvo in a competition war.
Perhaps Apple realised this too late, perhaps Apple wrongly assumed that Google would be happy to release yet another lame smartphone. Perhaps the purchase of Android much earlier was the opening salvo.
Whatever.
The important thing is that Apple saw the G1 as a declaration of war - and have started to a vigorous counter attack. By going after advertising on the iPhone, it punches Google right where it hurts; its revenue source.
This war is great for us consumers. We don't need to take sides, because both sides win.
It is, however, dreadful news for Nokia and Microsoft.
C.