Regardless of whether Android is bigger than the iPhone, Google’s OS is clearly a mobile platform to be reckoned with. At Google I/O in San Francisco on Thursday, Google CEO Eric Schmidt noted that 100,000 Android phones are getting activated daily, up from 60,000 in April. Suddenly, the race for the music cloud is getting a bit more more interesting.

Among a number of serious unveilings at Google I/O, the search behemoth revealed its purchase of Simplify Media. Simplify is focused on distributing locally-stored content to peripherals like mobile devices. And, just like Lala, Simplify ‘retired’ its service a few weeks ago, in preparation for a combined offering. Now, Google is unwrapping a service that allows users to port, purchase and access DRM-free music files from wherever.

So, Androiders will soon be able to stream music from their PCs or Macs. This will take the form of a desktop app that easily syncs into the upcoming Android OS. 2.2. Additionally, through the Android Market, fans will be able to easily purchase songs and sync them to their devices, though content deals remain forthcoming.

Of course, this is being billed as another epic attempt to dethrone Apple, though the Simplify-powered concept will pull songs from iTunes – as well as WinAmp and Windows Media Player.