geotopia

What's the Point of Google's Phone ?

Chicken and Egg problem. This isn't going to be a money maker for Google, but a way to bully the phone co.s to open up to Google and others. In the future, once there's a market, Google can make more $ from it's traditional business of advertising. The brand has equity and if at least one cellular co. jumps on, they'll have a short order for an iPhone-like (ish) offering.
Based upon that, a Disney branded phone for kids would do just as well in the short term.