Yup. It's also going to make life more difficult for Amazon and Samsung. But to me, this is a plus for most people who use the Android product, at least in the US.
It says that Samsung can't put its crap SVoice in place of Google Voice Search or ChatOn in place of Hangouts as defaults if they also want to include YouTube or the Play Store. It pretty much says that Amazon will have to buy into Google apps lock, stock, and barrel if it ever wants to bring back Google Search or enable Google Maps on Kindle Fire devices. As for Microsoft, it says that if they are even considering doing an Android phone, they'll have to build out their own ecosystem of apps and services unless they're okay with Google apps to be front and center. The services are a huge part here, if you don't think so, consider that Amazon effectively built their own workalike version of Google Services, and even that's pretty back level now, but was an essential part of making Kindle Fire somewhat successful. Personally, I think it would be very cool if Microsoft did an MS build of Android apps. They're the most likely company to actually do it well, but I'd be surprised if their stockholders had the intestinal fortitude to take that risk. We'll see.
As an Android user, I'm actually pleased with this decision because while I personally like Samsung phones, I hate the crap that passes for Google workalike apps on it. It's also high time that Google uses some of its own might to bring some order to the Android universe.
True lovers of pure Android can keep building on it. They are welcome to build on its open platform, and build their own apps. More power to them if they can build Search, Maps, video service, etc. that are on par with Google's. That would be great. Competition is good. But cherry picking Google apps or including outdated versions or worse, cheap imitations is not good.