Merging with Android means nothing really, unless they plan to replace java-based Android apps with a runtime that natively supports webapps.
Lets call this what it really is. Alphabet/Google is killing any project that doesn't directly contribute revenue via advertising or Google Play sales.
Not really. This is Google rationalising their client OS strategy to be one rather than two. I'm amazed it took them this long.
unless they plan to replace java-based Android apps with a runtime that natively supports webapps
Replace? No. But Android has been picking up a lot of features that allow webapps to behave like native ones. Home screen installation, notifications...
This is sort of what Apple did when they bought out Next and merged NextOS with MacOS to make Mac OSX that ran Unix apps along with Mac apps.
If only Microsoft would merge Windows with Linux to make Winux or something that runs Windows and Linux apps.
That's obviously not true. See: Google Cloud Platform, Calico, and so on.
"Alphabet/Google is killing any product that doesn't directly contribute ongoing revenue"
That would include Google Cloud like you mentioned and exclude Calico as that is currently a research project.