Ah, that's a good summary of the situation. Yeah, I can see how that might get them into hot water. I'm familiar with Play Services, and I think it's made the product better. I guess that in the end, it's a result of way in which Google launched Android. If they had put out their own phone with their own OS, they'd basically just be doing the same thing Apple does, except Google at least lets you change all the default apps (after the fact).
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Matt