"Only the prospect of Google or a similarly-minded company winning the spectrum excited us. Imagine if Google's nascent Android mobile platform would have arrived at one of the big Asian manufacturing firms with specs for a 700MHz antenna in place."
Well, you weren't giggling and grinning that Google had somehow fooled the big guys into their tent but are still giving them a pass on intent.
As Karl put it much more generally, Google is an advertising company. The only interest they had in this auction was to make sure their ad model was not totally locked out of whatever "new" services climb from the swamp. You're still talking like they are some benevolent rich uncle making sure the bullies don't take over the playground. In reality they are more like that odd guy in his trench coat sitting on the bench every day, watching.
I think it's more that I gave Google the benefit of the doubt. The ability to drop a few hundred thousand phones carry Google advertising onto the mobile market, with voice/data priced much lower than the entrenched wireless companies offer.
Think what you will about Google, such a scenario could have created an amazing shift in the market.