Nah, it's an hardware-related project, so it will get entrenched even if it's fundamentally different from other hardware-related Google projects.

Eventually you'll be able to buy Google devices that run Android, Google devices that run ChromeOS, and Google devices that run Fuchsia. It will be confusing, but that's fine, because it will all work great as long as you stick to Google's cloud-based services, which is what really matters.

Directly or indirectly, OS fragmentation actually helps Google's business model.