They did not pay $3.2 billion for some employees, but for a company with a proven track record of creating great hardware. Why not let them develop more household hardware for the upcoming internet-of-things revolution (provided it does come), with Google on top?
Yes, it is doubtful that Google would up and kill a product they just paid $3.2B for.
But I'm human, and I was a heavy Reader user. That particular debacle -- along with the NSA revelations of last year -- have affected my perception of the company in a negative manner.