This is what pisses me off.
If anyone had forgotten, like Amazon, Nokia didn't sign Google's terms in the OHA.
This means they are free to take the AOSP, add any (linux) modules to it, get rid of the gui and implement their own gui based on anything, add their own framework (Qt), and install their own services such as:

OVI Store
Nokia Maps
Nokia Messaging
Comes with Music
PureView Camera
My Nokia Content
My Nokia Backup

It would be Android underneath the sheets, and any improvements the AOSP or other OEMs make (eg Wifi Hotspot)... well Nokia could've shared that code, or used it as a guide to implement it on their own.

In fact, Palm could've been acquired to speed up such development, they had talent. Should I mention Amazon... they've got a lot of services and muscle and money. Look what they did with the Kindle Fire all on their own, now imagine that with Nokia's expertise and additional services.

And if Blackberry (downfall) were approached by Nokia with this concept and told that the control of the ecosystem (incl. services, ads, revenue) wouldn't be hogged by Google. And that they could share in the spoils. They could even make an agreement that BB handles the business class of devices, Nokia handles such and such to limit the amount of competition between each other and instead increase their cooperation. There's a lot more to gain doing that, and they would know. And Blackberry could even fuse its services with Nokia's such as:

BBWorld
BBM
And other online services (nothing comes to mind right now).

The App problem?
Nokia/BB could've bit the bullet. They could offer Android Apps which all have to have no "ad supported" versions and the money taken from the developer would be a staggering 40%. So either the developer makes a free version with no ads, doesn't get paid (maybe gets a device). Or the developer "bites the bullet" makes some money ($1x 100,000 dls) and only scrapes what's left of that (60k - taxes = 45k?).
...
OR the developer chooses Qt. Gets over the learning curve. Makes a great App. Can choose to make it ad supported. Or makes it paid ($1 app), and through a promotion gets 1 year without any % cut out of it (100k - taxes = 80k?). On top of that, after the promotion ends, he only has to pay 25% cut (75k - taxes = 60k?).

To be a developer it could be a one time nominal fee of $100, unlike Apple's yearly subscription rip off.
....

Anyways, the experience could've been a device with the fit, finish, and software breeze of iOS. Except only it would have a lot more features, probably not as much as Android. But being a "best of both worlds" approach.

Google would "declare war" by trying to alter Android significantly so that it impacts Nokia's business. But it doesn't really matter. Nokia could do a yearly update like Apple, and catch up with changes in Android.

However, by the time Google can make a big enough change in Android, Nokia/BB's ecosystem would've taken off. They would see more Apps written in Qt. Marketshare increase. In fact, they wouldn't be dependent on Android anymore, and after a while they could end submissions of Android Apps into their store and after a loooong while (5 years?) they could state that a refresh is going to happen and they need developers to convert their Android Apps to Qt variants, and that Android Apps would be eventually 'cleansed' from the Market. There you go Nokia, Blackberry... now why the hell didn't you do something as genius as that instead let yourselves go into demise?!?