It's more like some universal OS for Google products that'll probably be ready for launch in 2-3 years or so. Sure, IoT may be one of the goals of Fuchsia, but I'm sure it's meant for future phones as a step by step replacement for Android and future Chromebooks, probably starting with Pixel devices or whatever they'll rebrand to next year.
It remains to be seen whether business (legacy Android) or technical (new system arch) will win out at Google.
We're at the mercy of chip process engineers to a greater degree than is generally recognized.
Stuff like project Treble have taken most of the engineering time on that release .. it seems that at least for now the plan is to still have Android in 10 years
(it should be noted that Fuchsia and Flutter are AFAIK teams that are completely separate from the Android framework team)
And well, the state of the OS is .. ok I guess ? Like all projects of this size, building APIs is building future regret.
Some can be rewritten. Some are so bad they are revamped. Some are meh but not bad enough to warrant the trouble of changing them.
What will be in Google's interest?