^^lol, I'm not sure I'd look to Engadget and their 'reliable' source for inside info but if their speculation is accurate, they implied Froyo (ie 2.2) will bring Android to maturity for the first time. So if we are to assume that means Google will be 'where they wanted to be' as you put it, then we need wait for 2.2 to see any major slow down in kernel development. So no, Google is not there yet.
2.2 is pretty much done but wont be released until HTC puts out their new phones, so probably summer. So yes, Google is indeed where they want to be.