They were foresighted enough to see mobile as a key platform, and critical for long-term advertising... but not foresighted enough to try to work with Sun, to make a subset of java giving reasonable performance/efficiency on mobile back then.
Probably because Sun went along with it, so why bother?
In Italian there is an expression “putting a good face over a bad game”. Sun was in shambles and had no muscle to force Google to do the right thing. The CEO was already so embattled that he couldn’t admit he had mismanaged the relationship. So they just smiled and tried to spin it as a great thing for the Java ecosystem at large; which, at the time, it kinda was. After all, it basically gave Java programmers a mobile story that wasn’t the dying J2ME, and even a new client-side story that could replace the quickly-disappearing desktop toolkits.
Probably because Sun went along with it, so why bother?