Ask HN: Did Google made a mistake by making Android free & open source?

Right now, Android is a success. Obviously, much of its success is attributed to the fact that it is free and open source. However, I'm not so sure whether it is a good long term strategy or not. I'm wondering what hacker news community thinks of this. Here are the pros and cons of current Android strategy:

Pros: 1. Free 2. Open source. 3. Low barrier to entry for any hardware manufacturer. 4. Support & evangelism by Google. 5. Google apps.

Cons: 1. Loss of "license fee" revenue. This can be huge, since it is projected that smartphones and Tablets are the future and millions of devices are getting activated every year. 2. Low barrier to entry for competing search providers (Yahoo, etc) & other web services providers (consider Facebook, Amazon). There have been rumors that Facebook is working to implement its own Android implementation and it could very well replace google search with Bing or facebook version of search. Amazon has already started its own Android Market and it already has a successful device (Kindle) under its belt. 3. Patent issues (law suits from Oracle, Microsoft and Apple).