If everyone wants to really see Android grow and develop, even faster than it is now, than the iPhone will be the means to help it happen.
I don't know that I fully accept that premise. IMO, Google has it's long long-term sights on MS and it's near monopoly on the PC OS. Android is their opportunity to attack that. You have a point in regards to the hardware, but I feel like the hardware is pretty close to it's useable plateau (much more at this point is overkill). Not that phones won't one day be as powerful as a PC and laptops go the way of the dinosaur, but I see that proceeding with or without Apple.
Google isn't focused solely on Android. They are trying to be the ultimate comm service provider and suck people in as a company they can't do without. And Android/cells is how they leverage that into PC's and other devices in the home.