I read an interesting blog post on Ed Burnette's Dev Connection this morning. Google says that Android (the libraries, the core platform components) will be open-sourced 100%. Ed talked to several Google employees last week at the Google I/O conference in San Francisco. You can read Ed's entire article at his blog (linked above).
I think that an open sourced Android is great news, not only for the Android community but for the Java community as a whole. Android is Google's flavor of Java, customized for what developers really need on a phone. So, my understanding is that it's a subset that has some other essentials added in. It doesn't run on the Java VM, but rather its own virtual machine: Dalvik.
JavaFX Mobile, on the other hand, is Sun's revamped platform for mobile devices. JavaFX Mobile runs on the Java VM, not Dalvik. It will be interesting to see if any of the work that Google has done on the mobile platform will make its way into JavaFX Mobile. Already, the communities are working together. In fact, at JavaOne a few weeks ago, a JavaFX Mobile app was demonstrated on Android. Nice!