Has Google Killed Fragmentation Complaints by Developers?

I was discussing this with a very pro-Apple friend today, and (after a long and drawn out conversation about Google finally catching up with Apple), we agreed on the fact that I/O really is putting Apple on their heels as far as finally getting a full-on integration competitor.

But even more than that, we discussed the new APIs and the method by which it's delivered: Google Services. We agreed that, in effect, Google has curtailed fragmentation concerns for developers. Hear me out:

Before Google Services:

  1. New Android APIs, which require a new Android version
  2. Android version would be delivered to OEMs, who would take months to get it implemented and tested.
  3. OEMs would then pass their final hardware/software updates to the carriers, which would then need to be tested, possibly taking several more months.
  1. New APIs are delivered as soon as Google wants to versions as far back as Froyo!
So what do you guys think? Has "fragmentation" effectively been pushed to the wayside?