Does google have Bitcoin by the balls?
Google does not have the same control over application development in Android as Apple has for Iphones.
You can develop an Android app on your own PC and upload it to your phone without Google knowing anything about it. There are apps for just about anything considered 'edgy' including Bitcoin and Bittorrent.
So the answer is no. To alter the Android app-sphere in such a way to put Google in control would require some very serious changes to the architecture. Google does have an 'App Store' type thing, but this only factors into how much
exposure your app gets, it does not reflect on whether it's actually available to Android device owners. There are for instance many apps with clearly violate Google's user agreements(such as Youtube video downloaders).
Android is safe for now...