"If Google opted to turn Android into a notebook operating system, “we can see this product making real headway.” "
Hands up anyone who'd seriously agree with that? Making the jump from PC/notebook to mobile/tablet hasn't exactly worked well for anyone else who's tried it, and I've not seen much evidence going the other way either really. There's a good reason Steve Jobs kept iOS and OSX separate and never took suggestions that the two should be merged seriously.
The devices are for different purposes and analysts would do well to remember that, rather than lumping together everything with a CPU in it. When the IoT picks up (and when they're stopped masturbating furiously over the profit projections from it), are we going to have idiots at Canalys or Gartner claiming that a buoyant self-aware refrigerator market is likely to factor into reduced PC sales?