I think James is making a huge mistake in thinking that Google could have just used the GPL Java. First of all, let's remember that when Android was started in 2004, there was no GPLed Java. Secondly, Sun was clearly making money off Java ME, and did not want to push Java SE into the mobile space as that would have cannibalised its revenue.
The speaker is also glossing over technical reasons for creating Dalvik and Bionic library. Both are much leaner and have a much smaller footprint than Java VM or glibc. These were/are major considerations when Android was created, considering the limited resources available in mobile phones.