They would need to completely revamp the branding if they want to market towards younger non-tech interested individuals. Simplify the hardware/software and boost marketing with a cool and luxury focus.

That's impossible, as Google cant control what people do with Android. If some OEM wants to make a $50 Android phone, they cant stop them.

As you pointed out, Android still outsells Apple globally, but it should be obvious that most of those phones are budget devices, not flagships.

Android will never be a premium brand, but there can be premium brands or lineups within Android. This is probably why Google completely killed the Nexus brand, which used to sell very cheap decent devices, now Pixel is more of a mid-high end brand.