2. There's probably both much overlap in Google's patents and Oracle's technology.
3. The Oracle v. Google case is now primarily about copyright rather than patents.
Regarding point 3, I had forgotten that part, but I don't quite get the distinction where it affects the "mutually assured destruction" feature of patent libraries. Even though the sword Oracle swings at Google says "copyright" on the hilt rather than "patent", can Google still not file patent-based countersuits regardless? In other words, if Person A and Person B are in a standoff with guns leveled at each other, why would Person A simply allow Person B to stab them instead?
There's been a number of suits and countersuits between companies in similar industries with overlap in portfolio that got resolved way differently than big companies coming after startups or SME's with nothing. It would probably be worth a law student in this area doing a full survey and analysis to see how the variables involved contribute to the situation.
Anyone that thinks patents aren't leverage can try to force IBM out of their market or take most of their money with lawsuits. Just like IBM themselves have successfully done directly or with indirect threats of it supporting acquisitions. Just try. Spoiler: it's not going to work and their countersuits might be interesting.
2: There's probably not much overlap in Google's patents and Oracle's technology.
So, if the concern is innovation, then it's best to patent everything possible into non-profits and public benefit corporations that promise to never use or charge any open developments. Not just promise but in their charters, etc. Might have a small membership fee just to keep it going. Then, any threats to open projects are made with lawsuits from this organization going against them. I think there's already an alliance in OSS doing something similar.
Yet, the lesson from prior discussion was: "a good offense is the best defense" given virtually anything can be patented and sued over. Too broken for an avoidance strategy or even fair, payment strategy.