You’re thinking about it all wrong. If you told one of your clients that long haul you could force one of their competitors out of the market, or at the very least, further marginalize an already marginal market segment, I’m sure your client would be thrilled at the prospect of nullifying a competitor totally.
Problem is that the analogy doesn’t really work because there isn’t really a client to whom Google must answer. In effect they are simply continuing a competition that Microsoft started, only with services rather than TV spots. I’m sure the stockholders feel fine about that.
This presupposes that A) Motorola owns Droid. B) Google cares for the Droid brand. C) Google can’t do their own marketing – personally I’ll take William Tell Overture over “THISPHONEWILLCONSUMEYOURSOUL” any day of the week. D) Fuck Verizon