There's a difference between the product made by a manufacturer, and the OS distributed by Google (their "service"). If we are talking about Google's incentives, than we have to look at their relationship with Android as a product. They are giving away Android to manufacturers for free. It's _Google_ that has the incentive to sell the users' data. That we purchase devices preloaded with Android doesn't pass that sale off to Google (like it would to Microsoft with a Windows computer), so it doesn't take away their incentive. So for the purposes of determining at what social cost you use Android, it might as well be gratis.
Note that 'their "service"' includes the Play Store, which is a not insignificant revenue generator for Google.