What exactly did you think the "I" in IOT stood for? Also, like Android there's no need to use Google services. Just patch it and update it yourself if you're so inclined.
I was kind of hoping it meant "internet" in the sense of "I can connect to and control the device from my phone", not "the device will be sending data to its manufacturer". Hopelessly naive, I know.
That is Intranet of Things, IoT's lesser known cousin.
Last time I checked using Google Services was still an option when using an Android phone.
Personally, I want "I" in IoT to stand for Intranet.
Local network connected devices that can be reached over the Internet if desired. You know, like PCs.