I looked at some android stuff too for a bit, I was interested if their prelink could be used for PPC without a huge problem. Didn't seem like it. Not only was it quite ARM specific but it was tied into how their libc worked.. Ended up using normal prelink and some haxoring for cross compiling..
I've done a lot of embedded stuff too and I don't use udev or HAL or really much of the Linux user space beyond a few core libraries glibc, openssl, etc. So it is hard to fault Android for that.
But chucking glibc and replacing it with something so vastly inferior is not going to work for a lot of people. For instance last I looked there is no IPv6 support at all in their libc.
Basically, it seems a great way to run some kinds of Java apps on a ARM, and some phone specific brickabrack surrounding that but it isn't going to take the embedded Linux world by storm any time soon.