Would it be a bad idea for Google to completely open this up to all app developers?
- A Fully self contained product with, CPU, memory, connectivity, display built in mean only option "c" works.
- With the very small size, it likely means it is just, a battery, bluetooth and display. So options "a" can work at an early stage.
One simple way to allow all developers to use it from day one is to have it work very much like the notification system in Android works today. It would be a simple and efficient way to get information from the phone to the user without having to keep removing it from your pocket or bag.
There will be no restrictions because this needs a massive amount of support. Google will push certain aspects because at the end of the day software always makes more money than hardware. In this case, the hardware could make money with the hype generated from a simply 2 minute internet ad.
From what I know, Google sucks at making money in software. NO ONE I know pays money for Android apps. NOBODY! Many people I know pay money for iOS apps/games, but I'm under the assumption that even though there are more Android users, fewer of them buy software and sync their devices since you cannot buy Android cards like you can buy iTunes cards and it's much more of a pain to backup the device than simply launching iTunes and making sure you're connected to wifi.
Google has a future winner here. That's about all we know so far. They need to get better at making money off software and making their devices simpler for non-techies. Sure Android devices can do more than iOS, but iOS users know how to do more with their device, because of the simplicity.