The purpose of android was twofold, AFAIK
1. Andy thought the mobile experience of most users was a lot shittier than it needed to be. While the sidekick was a success, Google was able to provide a vastly larger amount of resources to bear on the problem than his startup could (and well, his startup was running out of money :P). The main goal of android, believe it or not, was to fix this shitty experience.
2. Also, one of the strategies was to keep the carrier's walled garden app models that were becoming popular (this was before apple) from eating Google alive by demanding cuts of ad/other revenue from Google's inevitable mobile apps. Actually, back in these days, the most worrying people on these fronts were the carriers, not Nokia/BlackBerry/whoever. Android and the iPhone essentially commoditized carriers. Before, they essentially controlled what apps got to run on their network. Now they fight it out to be "the best iphone experience".
Nobody was sitting around thinking about how they were going to get and use personal info from phones into ads.