This is probably Google's real vision of the future of internet devices.
Android is a good project, but forces them to work on a lot of things they're not interested in and get little return from (Google makes his cash thanks to internet traffic, trough ads placement).
The fact that they should (for the sake of the Android platform) continue to improve, and maintain an app store and a software platform for the benefit of hardware makers is way less interesting for them than the launch of an internet app store and the launch of browser based OS, where all would be made in order to augment users internet usage.
Today they also announced the web app store launch for november, now at least we'll get to see how open Google really is.
Are they going to police the web app store? (since piracy is a huge concern for developers on the Android platform, resulting in a lot of big player not even trying to adapt their software to Android)
Are they going to allow the store and the apps to run on browsers other than Chrome?
Already today they announced that they intend to allow devs to embed C++ code in their web apps, without even talking about it to the web community.
Remember the flak Apple sustained for announcing the webkit community they were investigating ways to render every tab independent in a webkit 2 fork? And all this while Apple was (and still is) the main contributor on the webkit project, a project that Google (and so many others) leveraged for chrome (without improving it much but adding feature on a private level).