I was working in mobile games at the time and ended up working with Google on the Play Store launch, among other things.
But what I mentioned was not some big secret. Everyone knew Android was supposed to be the response to google having to keep stashes of j2me devices in drawers, which is ironically what everyone ended up needing to do with Android devices.
People have memory holed just what a shock the iphone caused, not just technically but strategically, and how it altered who has the power over distribution. The whole industry (google included) did not see this coming because of the power of the carriers.