* "he left out the part where Google recently sent Microsoft a cease-and-desist letter demanding that it remove the YouTube app from its Windows Phones" has nothing to do with interoperating, but rather Microsoft not showing ads (among other infractions).
* "Mozilla guy" is Dan Buchner (https://news.ycombinator.com/user?id=dandonkulous), who's working with Google on web components. http://webcache.googleusercontent.com/search?q=cache:2cpEUw1...
Larry gave an impressive non-answer to the relatively basic question ("Hey, any chance web technologies will replace Java on Android?"), and went off on quite the interesting tangent about just about everything.
I can only assume he's been wanting to say these things for a while, and jumped on basically the first open ended question he got. I bet the Google PR team was freaking out a bit.