Here is how I see the "Fragmentation issue": My customers are using one of maybe 800 or so different devices, with maybe 100 different software systems powering them. That number was about the same before and after Android came about.
Now if I want to write a program for all my customers, I need to theoretically write at least a hundred different applications. That sucks. But today, thanks to Android, like 95 of the available operating systems are based on the same development kit, Android, and so instead of writing 95 different applications, I make one and then adapt a little if necessary.
Android is a defragmentation platform. What we call "Android fragmentation" just means that the defragmentation works 90%, not 100%. People can use Android to build lot's of different operating systems, which are either very similar or very different that what is available in the Android open source project. But because it's all based on the same code base and runs against the same compatibility test suite, a developer like me can target many devices and many operating systems with a single code base. That's awesome.
iOS and Windows are fragmenting the market for me. They are not compatible with Android, so I have to write a separate application for these systems. Often from scratch.
A few notes to further explain this position:
"operating system" is a very generic expression. For most people today an operating system is the software that is installed on the device minus applications that the user installed himself.
E.g. the app store, itunes, Location Services, the User Interface and the push notifications system are considered features of the iOS operating system. But on Android based devices there are independent from the Android system. You can make your app run Holo no matter what Android version is installed on your customer's device.
When speaking in iOS terms, you can say that 90% of all Android devices get updated once per months or so, when another update for Gmail, Google Voice Search or GCM arrived.
You do not need to depend on Google if don't want to make your software compatible with Android. There is no dependency from Google in Android, all their influence comes from the fact that they own the most popular third party app suite that every OEM wants to license on their device. If and OEM wants to go their own way, like Amazon, Google has no way to stop them.