I'm not sure if "you turn on a VPN and govt is out" is an accurate representation though, considering not all VPNs also resolve DNS requests, and a number of ISPs resort to deep-packet inspection and a number of tactics that would let them collect information on users. It's a matter of agreement, compliance, or force for the government to get their hands on that data.

But I definitely agree on the point about Google Play Services. For a platform that is often touted as being open, Android isn't quite Android without Play Services, and that wouldn't be the case if Google wasn't systematically ensuring that specific outcome.