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I'm guessing Google Music (or whatever it's called) will work the same as iTunes Match. It'll scan your music collection eg your iTunes library or wherever you keep stuff, and match what you've got. So if you've got Abba and Google has Abba then it will just be matched on your cloud storage. If you've got Alien Sex Fiend and Google hasn't then it will be uploaded to your cloud storage. The music is then available to stream or download to your device. Just guessing though. The US has I think had this for a while.
Google will continue to support the Nexus devices for as long as they're able to run the latest Android releases. (And don't forget, 4.2 is still Jelly Bean.) For example my Galaxy Nexus is newish to me but was originally released October/November 2011 and has had all Android updates so far. I expect it will get 4.2
As someone else mentioned, the support is much more Apple-like with a Nexus device. The lack of hardware/software support from the likes of HTC, Sony, Samsung etc for devices that are only a few months old has previously put me off Android handsets.
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