Some good intelligence from Simeon Simeonov on the “Google Phone”:

Andy Rubin has a team of about 100 people at Google working on the Google Phone. So people have been paying attention. Andy was the founder of Danger and later Android, which he sold to Google in August of 2005. Andy is a systems guy and so it’s a good bet that he’s working on an OS for the famed Google Phone.

Source: The Real Google Phone « HighContrast