"All of the individual courses that make up the Nanodegree are available online for no charge, Google said, while Udacity offers additional paid services."
I THINK the $199 is for Udacity Mentoring and a Cert at the end. Being only a novice in Java and never having programmed for Android (I'm a DBA most days, but program on occasion.), I plan to take the classes for free just for the knowledge and practice... I've taken about a dozen classes for free this way, but agree most who go the free route are not committed. Even when you could get Honor Code certs, I think half the class would drop out by 2nd week, then lost another 5% evey weeks that follows...