Thankfully, Google Chairman Eric Schmidt has announced that "Android and Chrome will remain separate." Rumors that the products would be combined emerged last week when leadership of Android and Chrome were consolidated under Google Senior Vice President Sundar Pichai. Schmidt stated the obvious, but if you are a developer and you took the bait and thought the rumors might be true, you already read enough of Google Chrome or Google Android documentation before Schmidt’s clarification and confirmed that consolidating the two products would be, well, stupid.
Browsers and browser apps run on Android, but this is only one aspect of Android. Android apps are very different. Apps like photo sharing may be User Experience (UX) intensive like a Chrome app, or may have a limited UX focused more on collecting data in quantified self apps that measure movement, nutrition, and, in conjunction with external sensors, quantify such measures as sleep and heart rate.
The biggest similarity between these two products is, with Android's 70% market share and Chrome’s 30%, they each lead their respective market segments and need to be managed much differently now, compared to how they were managed when they were still on the rise. While there are operational economies of scale to be gained because of this, it’s very unlikely that Google would merge development teams or code trees between the two projects. It’s not that it can't be done, but it would require a huge retooling of development environments and tool chains.