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There is no Chrome for smartphones, and so far no one has said anything about dropping H.264 on Android (although you can see it happening as soon as WebM extensions for ARM start being more popular).

(edited: typo)

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You are correct, but why would you imagine Google would treat Android differently? Even though they haven't announced any changes specific to Android, I expect Google's left and right hands to work together... eventually.

Because Android is open and developed with the cellular carriers and manufacturers. If they want to add a H.264 chip, why would Google stop them?

They'll almost certainly have an H.264 chip but the standard Android browser (and Firefox and Opera Mobile) might not take advantage of it when faced with an HTML5 video tag.

Maybe we'll see Apple and Microsoft release browsers for Android!

That's a fine argument, but it's just not the one in the article.

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