Google didn't, but all the tech blogs did for some reason. Either they can't read or they have some kind of business motive for making things up. And now they have a reason to generate another story from nothing.
Google has TERRIBLE PR when it comes to stuff like that. They just seem to manage releases so horrendously that it is simply shocking. The whole net neutrality thing being the most recent example.
Not only did the Nexus One "die" without dying, it died multiple times because at each step Google would make some sort of vague release, and again every tech (and mainstream) site would scream that the Nexus One was a failure, it's now dead for super sure, and so on.
Seriously, if someone in the Google executive is reading this: You guys are clownishly amateur at dealing with this stuff.