Cue Inigo Montoya: "You keep using that word. I do not think it means what you think it means."
And even if you ignore the poor choice of words and the inane anti-iPhone spin (what, the iPhone OS won't run on products besides iPhones? I'm typing on the iMac that disproves that point!) what I see here is Google trying to put a positive spin on one of their platform's big problems: Android not only can run on a thousand kinds of hardware, but that appears to be the official plan. Some of that hardware will have physical keyboards. Some of it will not. Some of that hardware will have screens the size of a dinner plate. Some will not. The result is a loss of coherency: What kind of hardware is an Android app for? What is Android for?
If you build an Android app, you have to decide if you'll optimize it for a physical keyboard on the long edge, or a physical keyboard on the short edge, or a software keyboard. You'll have to decide how much of the screen you can take up with your control panel. You can't optimize for everything at once.
The likely outcome is that you'll have to support your Android software on a divergent set of hardware, and you'll inevitably disappoint a subset of your customers. If the customer base breaks into thirds and you can only please one-third at a time, you will routinely disappoint a majority of the customer base no matter what you do.
The fact that the iPhone has one consistent hardware platform is a big advantage for Apple. The newest iPhone OS runs great on my two-year-old original-edition iPhone. The phone is getting better by the month: The interface works better, the crashes are fewer. This is presumably because Apple's engineering team can focus on refining the current platform rather than on porting their OS to a dozen different platforms.