This is the first of what will be many things I wish Steve Jobs was around to see. Adobe certainly gave Steve a hard time for saying mobile is not the proper place for Flash. Glad they finally woke up and agreed with him.
I'll never count Microsoft out in the smartphone battle. If Android manufacturers get beaten badly enough in the courts they might all start calling Redmond. But there is no doubt Windows Phones are currently nowhere to be seen (except in Herald Square).
As I understand it Kindle Fire doesn't run the Android Marktetplace. They are treating it like an entirely new platform. Which means that Kindle Fire is not more fragmenting Android anymore than WebOS fragmented Android.