I'm not sure how well the Google console would fair. I imagine that it'd be fairly priced but outside of a few home markets, there's just too much competition. Especially if Valve releases a Steam console then there's no reason for Google to really get into the console business. I'm sure that with Apple and Google having their own competition and getting into a saturated market, that anything is possible.
Android is a very popular mobile platform and you could list the pros and cons for miles, but in the end I as a gamer who plays multiple consoles wouldn't be getting into the Android games when I have things here.
With all of those thoughts put out there, its possible that Google could have a market similar to the Wii when it came out and dominate a market share for an amount of time like that. Time will tell.