1) I would imagine that regardless of whether it is in Google's interest to count ad revenues in their public reports of profitability, it is most certainly their internal metric for profitability. They simply must have some metric for deciding if the Android investment is effort is worth pursuing, or if certain Android strategies can be considered successful. Would Rubin's declaration that Android is profitable be true if he were only counting early access fees, and Nexsus sales, etc? I don't have the numbers, but I would doubt it.
2) The 3 to 1 profitability of iOS against Android seems to make some sense if you consider that iOS, as of October, commanded over 3x the mobile traffic share of Android. (see http://bit.ly/tHlYe6 )