@GizmoAgent: also take a look at
project (a)rowboat.
Android runs perfectly well on a resistive screen, and there isn't all that much that really requires multitouch. But android does rely heavily on using a touchscreen, and the positioning of the Pandora's screen makes that not entirely optimal...
Furthermore, most emulators for Android are (IMHO inferior) ports of the same emulators as what the Pandora has, there aren't all that many decent "native" Android games (and Angry Birds has a Qt-version for the N900), and I was pretty underwhelmed with the functionality of most apps. Most are very minimal... Oh, and there's practically no integration between them. They all live in their own little world... (But that might be me, I've only been playing with android for a short while on a slow Touch Diamond...)
IMHO, Android is still a very immature platform, with immature apps. Pandora's apps might not always have an optimal gui, but they do the functionality and maturity that comes with time.
So, The Pandora's form-factor is sub-optimal for android, and better suited to more desktop-like apps, and those apps are more mature anyways. So, as for now, Pandora's OS is a better, more functional fit for the Pandora than Android. Of Course, that doesn't mean there is no use for Android-apps (the more apps, the merrier, and many (web)services only provide an Android-app), but don't expect too much from android itself...