Google's master plan

So by now we are all aware that Google is going to announce their new 7inch tablet in a few hours here. But what exactly is Google's master plan here?

Why 7inches? And what are they trying to accomplish?

Recent rumors say that this tablet is intended to compete with the Kindle Fire. This might strike as odd at first since the Kindle Fire is Android's best selling tablet - even though it isn't really Android. But that is exactly the problem. I believe Google's reason to compete against the Fire is to bring back traction to the Android tablet market.

Why doesn't Google compete with something like the iPad?

Let's face it - no matter how good Android tablets are, the iPad isn't going to go anywhere. We are starting to hit an age with ecosystem matters, and a lot of people will still choose Apple. To each, their own. It is most important for Google to "reorganize" the market share they have now.

Manufacturers - how to they play in all of this?

When Microsoft announced the Surface tablet, they basically said "screw you" to their partners and when off to make a tablet that they thought would sell. That's not how Android works - Android feeds off brand loyalty and partnerships. It also innovates that way. By reorganizing the Google tablet share, Google will bring back traction to their manufacturers - especially for the 10.1 inch market.

Anyways, that's my opinion on what is happening today - what do you guys think?