#2 sounds like it would prevent manufacturers from developing or using Android forks on completely other devices so, for example, you could not sell a device with Amazon's Fire OS (Even without Google's apps, so no hindrance to Google's branding) while also selling other Android devices with Google's apps.
Would seriously hinder entry-to-market for Android-based forks.
To be clear, I have not read the original agreements to confirm this is the case, it's just my interpretation of #2.