Flipping The Google "Switch"
I've been using many of the Google services for a long time now. Some of which went by other names before they were acquired by Google (i.e. Writely and YouTube). Everything from Gmail to Adsense to Blogger to Calendar. But these are all the same in that they are just intangible services and software. Of course hardware is nothing new to Google either with its search appliances, but only on an enterprise level. If the rumors are true though, that could all change very soon.
There are a few questions that have been raised in my mind about this yet-to-be revealed device. I'll also use my "fuzzy" logic once again to come up with what I think makes sense for how Google would answer these questions.
 Why a mobile phone? Why not? Aside from the "because we can" answer Google is more likely to have, their current suite of web applications are practically begging to be formally assembled in a more organized fashion on a mobile device. And with full control over the hardware, Google can more easily "shape" the way all things Google work on mobile devices.
 How much more than a phone will this thing be? One has to only look at the plethora of services offered by the Internet giant to see that there's a ton of potential features Google could cram into a mobile device. I'm betting we'll see this phone come with many of the features that have made Internet Tablets like Nokia's 770 and N800 what they are today. Also, in order to create demand for such a device, they'll likely keep the price low by using some form of mobile advertising that is yet to be seen. Two birds, one stone.
 What's this "really" about? Could be a shot at Apple's iPhone. Could be their head start into the realm of mobile advertising. It could even just be Google's way to reach as many new users for reaching ever more towards their monumental goal of "organizing the world's information and making it universally accessible and useful." Whatever the case may be, there are a lot more reasons for Google to have it's own phone than not.