People want Android to be free, but then, those who profit off of Android should somehow not have to pay in some way, shape, or form?
From a user point of view, that question is irrelevant, and IMHO it's even hard to have an opinion about.
I don't care who pays what (even if it's me), as long as:
1. The software I run is maintainable. (so in practice, that's nearly equivalent to "must be Open Source")
2. Nobody who isn't me, has any say whatsoever about what I'm allowed to run on my computer. (so in practice, that's nearly equivalent to "The OS and all common dependencies/runtimes must be Free Software"). This requirement was already getting pretty compromised by Google Play Services on Android, but it's now clear Google wants their platform to become completely ineligible.
I don't really care whether or not parties that profit from Android pay Google, or if Google pays them, but I know that Google has immense financial incentive for the parties who profit off Android, to continue to use Android. So maybe Samsung should pay Google or maybe Google should pay Samsung, but that's between them.
shouldn't Google get SOMETHING for the work that goes into new versions of Android?
They already do. I can't think of a single Google application which isn't spyware. (Can you?) To an ad company, surveillance data is valuable and let's face it: it's the whole reason Android exists at all. Android's entire purpose, from Google's PoV, is to make opting into Google Surveillance the most convenient thing to do.
And I'm fine if they keep trying to make spyware-optin most convenient, but making moves like this suggest they intend to obstruct competition, and from a user PoV, that's an extremely hostile act. (If you wanna be the biggest tree, grow, instead of chopping down others.)
It's not realistic to expect phones to come as just an electronic device and for the public to treat it like Linux and install their own OS on it
Regardless of whether or not it is "realistic," being able to do that would definitely be ideal. That type of approach has certainly proven itself to be best for all larger form factors, so why wouldn't it also be the best for handheld computers too? I am super-skeptical of the position that handheld PCs are somehow a magical special case. Society lost its mind, memory, and all its common sense when handhelds got popular, but it's never too late to stop and think "wait, why did I forget everything I knew about computers and abusive network effects?" We actually don't have to repeat the obvious mistakes and horrors of the past.
Nintendo-izing Android will make it as worthless as iOS.