Seems to me that if he were moving to head another high-profile project at Google, it would have been part of this announcement.

Maybe he's leading a high-profile project that hasn't been announced yet.

Wouldn't the announcement mention Andy's new role even if the project could not be named? Without mentioning his plans, it leaves open questions like these, which does not make Andy look good.

I was under the impression that Sergey was heading Glass.

Actually Babak Parviz (the original inventor) is leading the project, which I suppose reports directly to Sergey (https://plus.google.com/100149980664588993669/about)