Yup, the whole thing looks like industry standard PR. Poor little Google one would hardly know they're a giant company who is using their search monopoly to undercut smaller competitors in the smart phone market.
How exactly is Google using their search monopoly to undercut smaller (or larger for that matter) competitors in the smart phone market?
To Google making sure that people have cheap smartphones increases their search revenue. It also ensures there will be a smart phone platform with Google defaults. On an Apple or RIM device MSFT might have enough dough or other leverage to change a search default. And on WinPhone7 you can be pretty sure the search default will be Bing.