You've hit the nail in the head regarding Android spilling over beyond just phones. Take a look at the ARM development boards, there is a new one coming out almost every week, and guess what almost all of them have in common? They all run some flavor of Android.
Let's say you are developing some expensive piece of industrial technology and would like to provide some sort of interface through a tablet. Sure there is the iPad and many opt to use that, but in the end is a closed garden, you can't change it significantly. Where are you going to go? Android of course, since it already has almost everything you need and it is customizable to your heart's desire. In the long run, iOS will keep on being one of the champions of the mobile market (and that is exactly where Apple wants it to be) but Android will evolve beyond that reaching many other sectors.
Let's say you are developing some expensive piece of industrial technology and would like to provide some sort of interface through a tablet. Sure there is the iPad and many opt to use that, but in the end is a closed garden, you can't change it significantly. Where are you going to go? Android of course, since it already has almost everything you need and it is customizable to your heart's desire. In the long run, iOS will keep on being one of the champions of the mobile market (and that is exactly where Apple wants it to be) but Android will evolve beyond that reaching many other sectors.