> At the moment, I would be hard pressed to see Google willing to settle for anything less than Apple stopping all lawsuits in the mobile space and all future lawsuits against Android (and probably FOSS to boot)
The norm in patent wars is to reach an agreement to stop all current conflict. An agreement to stop also future lawsuits is not realistic since nobody can know what future conflicts may appear. Patent wars are means of pushing the business leaders towards signing an agreement, I am not aware that total wars to destroy the other part is a goal though there have been close shaves. With Steve Jobs declaring war on Google the motive and starting point is now a little different from the norm.
> Apple stopping all these lawsuits will be a very public action, and no matter what the opaque terms of their settlement with Google, will be seen as Apple backing off.
Settlements tend to be confidential though it will be public that all patent conflicts will be terminated. Both parts will be backing off; which one is backing off the most is likely to remain secret. In my limited experience any monetary victory is normally tiny and mutual secrecy is assured by equally mutual embarrassment.