So what? If this contrived issue that Google may face is now considered a serious matter, then I guess everything is off limits.
"Hey Tom, what should we name our new operating system?"
"I don't know, how about 'daring diamond' - it's got alliteration, and everybody loves diamonds."
"Mmmm...nope, sorry, that whole blood diamonds thing...don't want to risk that!"
Google isn't making a statement supporting Nestle's practices in other countries. They're not saying people are silly for boycotting the product. This is really just hypersensitive.
I'm not saying you shouldn't boycott Nestle. But KitKat is a fantastic name. It's not a loaded word. If you stopped people on the street and asked them what they thought about it, they'd probably say, "Hey, those give me a break commercials?" not "Hey, I boycott Nestle! Screw those bastards."
It's a cute name that has alliteration and is well known. I mean...come on. Criticize Google for something substantial, not because they named an operating system after a delicious chocolate treat marginally related to some controversy. If you're going to criticize Android, go the whole hog and do it with something that actually matters.