But will Android clothes have an awesome UI layer? Not to downplay Android's success, I find it very hard to follow the jump from smartphones to everything else. I don't see Android scaling up (to run on computers like Windows 8). And when it scales down, Google doesn't win anything.

The OP reminds me of business analysts in the last years. Some metric in the PRC increases XX% year over year, and a short back-of-the-envelope calculation later, Westerners shouldn't teach their kids anything but Mandarin anymore. And Android is not even as autonomous as the PRC. Suppose it runs on 99% of all devices (whatever that means at the time) - I can easily imagine a court forcibly separating Google's services from the OS.