Ad-supported google phone?

With the recent hype around "google phone" I am wondering... If it turns out to be true is google simply going to make it a device with a slick interface and a couple of google-ish features, or, would they try to change the laws of the market?

I mean, they are kings of ads, they tried a limited area with a free ad-supported wi-fi. So, would not it be interesting if they planned an ad-supported cell phone? It senses where you are, it shows you local businesses, the businesses pay google, you get either a free service or a discount towards the service..

There are of course privacy and fraud issues, but... it's interesting nonetheless.