I think Google is following the let the chips fall where they may attitude, ie: let the market do as the market sees fit. I do feel that they started to pay more attention, especially with the new Google Play move that combined Android, Music, Books and Movies under one umbrella but don't think its enough.
Its a bit hard to say if what Google is doing is good or bad, as a firm supporter of Open Source, I love the idea that they only give the tools and let the people decide, as a End User I believe they should do more to give me a quality experience.
If I was in charge I would have split Google's market into 2 sections, the open for as it is now and a Vetted section where developer pay more to get applications tested and certified ala iTunes approach, as for the hardware I do believe the OEM's are trying way to hard to cut corners to make a quick buck instead of investing in a proper ecosystem and push for future sales.
I personally love my Android tablet especially with what I can do with it(Functionality) vs my iPad but I do feel that the iPad's hardware and performance is unmatched. Android Tablets days are numbered, not by iPad sales but what Microsoft/Windows 8/Nokia will bring to the table.