Regarding Google losing interest once it's gone to Engineering. Perhaps that's the idea? Google just wants the advertising revenue from the searches. They will probably be more than happy for Asus/Samsung/HTC to come along and do Glass (or whatever) better/cheaper, just hoping they'll stick with Google as the engine.
I think Google's aim with the Nexus and other products is just to keep some competition out there so folk don't all flock to Apple/Siri.