for software tied to hardware, "delayed open source" might be the best you can get.
You can't claim that Google suddenly doesn't believe in open source anymore, just because they want to avoid bad user experiences leading to bad rep.
If you're selling software tied to hardware, Google's model of delayed open source might be the best you can reasonably expect.
They still don't jail you like Apple or ghetto you like M$.
Soon enough, we'll be able to put a Cyanogen version of it on any phone we want, and hold ourselves responsible if it runs or looks like crap on a small screen. And at least 3 Hardware makers (Sony, HTC, Samsung) have just decided not to screw us up if we want to use custom ROM's, so we can update our phones when we want to.
So, from a user standpoint, its a fine system all around. Hardware makers can't cheese out too much on device specs, yet we can install whatever version we want AND get the source code eventually.
Contrast Now, Later and Never, and you'll see the difference between now and later is a lot smaller than between either of those and never!