When Google was building its mobile operating system, I am sure it wanted that unfamiliar or small device manufacturers will adopt its OS.
Modu, the Israeli mobile device manufacturer, launched their first device with a closed simple OS. It was in part due to development resources and time constrains and of course because of the poor processing capabilities of the device that could not run heavier and more sophisticated OS. Frankly, from day one I did not understand why Modu is  investing resources to build an operating system, it is not its strength and there are good OS in the market that can be licensed just like the Android.
After struggling with launching the first device and getting rejected in developed countries Modu aimed to, Modu understood that they need to aim higher and introduce a better more modern device if they want a chance to hit deals with European and US operators. Because of the nature of the device, dramatic modification needed to be done but it is worth it. Modu will be using a versatile, more advanced OS with rapid development and constant updates and upgrades.
Secondly the eco-system that is being built alongside the OS (the application store) will contribute to the offer of Modu and will make it a more lucrative device than it could be if they decided to provide only J2ME application support.
Dov Moran told Techradar in an interview that an Android based jacket is being developed and that Modu2 “will be a touchscreen, a very unique concept, and will justify its label of being innovative. It will be a 3.5G product, but will also have a number of other features”.

Modu2 looked like a specially built device for the Android OS, therefore I bet that Modu will abandon its OS and will use the core of the Android operation system from now on until they have other options.
For dessert Modu mentioned that an Android based Netbook will also be released. Nokia watch out you are not alone anymore.