Decent analysis but misses two significant points:

- Moto has a Java license that should change state on the Oracle lawsuit, in which they are currently being hammered by the judge

- The settop box business is decidedly non-trivial if (and it's a big if) they can get the cable companies to move into the 21st century. Comcast boxes, for example, lose 100% of their programming guide in the absence of power and can take more than 72 hours to reload the standard 13-14 days of content. Search sucks and presentation is close behind.

While Google's processes may need some adjustment to suit the hardware business I disagree that this will cripple or kill them.