This is great. It would have been hard to make an IDE with the polish of IntelliJ from scratch, but, without official support from Google for Android development plugins, layout editors, etc. I had been reluctant to make the jump.

That makes me angry. I really like Jetbrains as a company and you would think Google could spare some money and pay Jetbrains something.

Don't be angry...JetBrains sounds happy:

"Confirmed! Android Studio is a new IDE that Google is developing in cooperation with JetBrains and based on IntelliJ IDEA. Details shortly." https://twitter.com/jetbrains/status/334725715922669568

This is massive for Jetbrains! We don't know whether some money exchanged hands at this moment, but Jetbrains is going to get a lot of value from the primary Android development platform being based on their product.

CTO of Jetbrains is talking about this at the moment at Google IO. It could have been a collaboration.

Hell, imagine all the PR at the moment. They don't just do Java, they have IDEs for PHP, iOS, etc. I wouldn't be surprised if their sales took off as a result of this keynote.

I agree. I see it as a massive win for JetBrains!