[bad_user]

     Google will be very tempted to design a great
     iPhone compete device

Past experience shows that Google doesn't have it in their DNA to build something akin to the iPhone. And the iPhone isn't great just because of how it feels, it's the customers service too. It would be stupid if they tried.

No, your best bet for an iPhone killer is Samsung, if only they would pull their head out of their ass for a moment and realize that the SG II is a disappointment as far as software goes and they should just install the original Android on it. Samsung should just focus on their strengths and let Google worry about the software.

This is Google's best approach - their stated goal for Android was to increase competition in the mobiles market. This strategy worked well (after all, their products are now distributed on most smartphones sold, what else could they want?) and they should just continue this strategy with Motorola -- and let Samsung and HTC compete directly with Apple, making Motorola release good products from time to time, just to keep them under fire.