Needs to be litigated anyway
This needs to be resolved for everyone, not just an agreement between Oracle & Google. There are lots of legacy APIs out there that everyone has implicitly assumed are free to use. Going forward, new APIs could have an explicit licence (free to use for any purpose, or with specific restrictions), and the restrictive ones would find their niche or just die. However developers need some certainty about the legal landscape to continue using all the old ones with no explicit licence.
Another point - this is all kerfuffle in the US, but I wonder how this affects the use of these APIs in Europe & elsewhere?