Speak to any Googler and you'll hear about the Chrome/Android divide. It's a pretty big issue and possibly Google's biggest weakness.
JS: And this also gets at another issue. I know that Sergey made some comments that were widely reported about a future merging of Android and Chrome OS, and to me this seems more like a statement of the obvious. In the sense that, once the hardware is full-featured enough to support all the things that you have on Chrome OS, then why do you need something as stripped-down as Android.
MP: Yeah, it's unclear. We get a lot of questions like this, and the truth is, I don't know the answer. We're so focused on shipping release one right now, we spend less time than the outside world speculating about what we're going to do next... how will we integrate this with Android... how will we do any number of things like that. -- http://arstechnica.com/business/2010/01/chrome-os-interview-...
The interview as a whole shows where Google's head was at regarding Chrome OS just a week before the iPad was announced, which is itself fascinating.
I think the evidence says it all. Three years later and Chrome & Android are no closer to a merger.