This looks very awesome and I hope something happens about it, but there's something I just don't like about touch-screen controls like that, and frequent use of the accelerometer. It reminds me of why there's so much shovelware for the Wii. Publishers/developers' insistence on conforming to the "unique" control style. I'm sure many of these Android games are great and I'd be glad to play them on my Pandora, but I'm a bit doubtful that there will be a good selection of "serious" games for the platform.
There's also the fact that the Pandora might be difficult to use with the accelerometer. With portrait games as part of the immersion sometimes you're meant to hold the bottom of the Android phone below the screen and look at the screen whilst tilting it. Since the Pandora is like a DS this wouldn't really work without breaking the immersion a bit.
I'm not trying to complain about the whole concept of running it on a Pandora though. Personally I can't wait.