So, I have to wonder, does this mean Microsoft makes more from Android royalties than Windows Phone royalties?
Microsoft's mobile efforts have always been about the ecosystem. Office, Exchange, Windows security technologies, and now the xbox platform (though I still marvel that having your xbox achievements available for perusal was thought to be a big feature of WP7). Given that approach, Android can serve that purpose even without royalties.
If MS defeated Android there is no question that they would raise the price of the licensing fee. Since they won't MS is faced with the reality that, while they are making money now, these patents won't last forever.