The kernel is GPL, but that doesn't stop you to write non-GPL apps on top of it. However, using a GPL OpenJDK would have made every single app on Android GPL.
http://en.wikipedia.org/wiki/GPL_linking_exception
Ie. apps that only use the Java system libraries don't have to be GPL'ed, only modifications of the VM itself. Google didn't want to place this restriction on Android vendors.
also, from: http://www.gnu.org/licenses/gpl.html
> The GNU General Public License does not permit incorporating your program into proprietary programs. If your program is a subroutine library, you may consider it more useful to permit linking proprietary applications with the library. If this is what you want to do, use the GNU Lesser General Public License instead of this License. But first, please read <http://www.gnu.org/philosophy/why-not-lgpl.html>.