Not really relevant in this case, though. Clearly, Google was planning to get involved in the mobile space before the iPhone. The physical form of that involvement may have changed, but that doesn't qualify Android as a "knee-jerk reaction".
In any case, since then the iPhone notification tray has clearly copied Android, etc. etc. All to the benefit of the end user, IMO.
Considering the relative growth curves of RIM and Android since 2007, I think switching from "Linux/Java Blackberry clone" to "Linux/Java iPhone clone" was a solid decision.
In a theoretical world you might in principle be able to do more with Android, but given the "iOS First" approach that major developers take, it's hard to argue that it lets regular users "do more" in the real world.
It may be a knee-jerk reaction, but it was also the best decision. The iPhone represented a gigantic leap in usability on phones, and if you can't beat 'em, join 'em. If Google didn't come out with Android, Apple would own even more of the market than they do today.
In any case, since then the iPhone notification tray has clearly copied Android, etc. etc. All to the benefit of the end user, IMO.