1. At the risk of sounding simplistic, it is the patents, and not the copyrights, that matter most here.
2. Copyright infringement might provide a basis for a damage award but this, in a worst case, could readily be absorbed by Google, even as it works around any copyrighted code issues in future Android releases. What is more, the main copyright claims appear to center on a bizarre technical point, at least as framed by the court pleadings - that is, that the so-called open-sourcing done by Sun of the Java SE specification was, in effect, illusory because no such license was valid unless a vendor (such as ASF) could show "compatibility" with the Java specification via test suites made available by Sun through a license of its TCK, which in turn required that vendor to pay license fees and to agree to restrict distribution to the desktop only. Whether that claim stands remains to be seen but it would seem to me that Google (even if had to pay damages) could clean up any infringing code without too much harm to its prospects for the Android market in doing its future releases.
3. The patent claims pose the greatest risks for Google. Should it lose here, Google could be permanently enjoined from doing further Android distribution and would (I assume) find it exceedingly hard to do any workarounds. In that case, Google stands to lose potentially a vast, critical market and would effectively have to make Oracle its strategic partner for all of the mobile space in order to solve this problem. Very bad news indeed.
4. The good news is that Google has a strong track record of fighting off extortionist patent claims and has hit back hard (see, e.g., the HN discussion on a piece entitled "Google Bowls a Googly," http://news.ycombinator.com/item?id=1899156).
I would be interested in how those who are technically knowledgeable assess the risks to Google from the legal framework set forth above or in how you might clarify or reframe those legal issues based on technical points that I have missed.