by the summer of 2012 .... the majority of the televisions that you see in the television stores here will have Google TV embedded in it
You read that right, Eric Schmidt expects Google TV to somehow end up on 50%+ of televisions sold in the next 6 months. Google TV is probably hovering around 0% of televisions sold today.
There were almost no details given on just how he expects Google to accomplish this, he only mentioned "a similar strategy to what we did with Android, the price is free." That's great and all, but Google TV isn't "free" to the consumer, you need a beefier CPU, memory, and storage to run the OS, all of which increase the price of the TV.