You can ask anyone, and they will tell you that the Google Web-Store was a complete failure, and honestly the Nexus One was a failure too. According to Droid-Life, Google is not working on a Nexus Two, but they still continue to say that the Nexus One was a success.

Rumors quickly pointed to a Droid 2, or Nexus Two, and the Droid 2 is only about a month away.

Google's CEO Eric Schmidt recently touched on the Nexus Two,

“The idea a year and a half ago was to do the Nexus One to try to move the phone platform hardware business forward. It clearly did. It was so successful, we didn’t have to do a second one. We would view that as positive but people criticised us heavily for that. I called up the board and said: ‘Ok, it worked. Congratulations – we’re stopping’. We like that flexibility, we think that flexibility is characteristic of nimbleness at our scale.”

Just like Droid-Life notes, it's surprising that Google is not going to jump into the 4G market. I have to give the N1 credit, because it really did revolutionize the way that manufactures produce Android devices.