In what can only be described as a "play nice with your bigger cousin" moment, Google's decision to exclude multi-touch functionality from the Android-powered G1 phone has been attributed to direct pressure from Apple.
According to anonymous sources from within the search engine colossus, the House of Jobs specifically requested no multi-touch capabilities in the G1, which Google was more than happy to agree to — even though the exclusion has resulted in a hail of criticism from reviewers, who feel its absence cripples what might be a viable "iPhone killer" candidate.
As you recall, Apple's recent "WE HAVE PATENTS! FEAR US!" sabre-rattling came as a direct result of the Palm Pre — which debuted with its own multi-touch interface.
Google, on the other hand, seems eager to maintain its cordial relation with Apple, with its iPhone support of Google Maps, Gmail, the search technology in Safari mobile, and a YouTube client. On top of all that, Google chief Eric Schmidt also sits on Apple's board. More reason to play nice.
Androids aside (which are currently outsold by the iPhone six-fold), Google's hardware forays include them looking to pair with Intel to produce some Android-based netbooks.