Interesting point: Android is booming in China, so we'll see the platform growing incredibly quickly in the near future. It's said that it will overtake Symbian in the Asia market some time in 2011 I believe, thus becoming the dominant mobile platform in the world. So there certainly won't be a lack of applications, and as Exophase says: if big companies start backing the platform, it'll be extremely stable and streamlined.
We've already seen Google contribute the fantastic Dalvik VM (well they sponsored the development anyways), replacing the ancient stack-based Java bytecode system with a virtual RISC-like instruction set with 32 virtual generic registers. This means that the platform has incredible performance optimization opportunities, and people have already started writing XSLT-based code transformers (yes, the virtual arch is so simple that you can perform compiler optimizations by pattern matching them; XSLT isn't ideal of course but it works) that fine-tunes the byte code for specific processors (somehow; they must have done some expectation-maximization tuning with the Dalvik's JIT). Now I'm just waiting to see the addition of stack-stored data structures beyond [byte, short, char, int, long, float, double] so that one has some chance of doing basic memory management without references.
So yeah, exciting times ahead for the Android platform. I'd say that we should ride the wave, at least with some reincarnation of the Pandora.
@Exophase, The whole windowing system is basically Java-based (the native code is practically inaccessible, because Google apparently doesn't want users to be able to create apps that can "take over" the UI and spawn popups or kill the program manager etc), so you need to at least have some kind of Java interaction. But other than that; you can always use JNI (Google it, it's fairly powerful) to create a (native) dynamic library whose functions can be called from Java (with automatic marshaling etc.) and from there you can go wild. I wouldn't personally recommend to put anything besides performance-critical components in native code libraries, because the bigger the "calling interface" is between the native lib and your Java app, the more problems you'll encounter (related to memory ownage, mutex stuff for threading etc), and you can't do that much from native code anyways besides pure number crunching and interacting with non-standard devices; at least not if you're on an "unrooted" device.
@Eniko, Python and Pygame will still work fine; you just run your code via Jython (Jython has had some problems with code generation on Dalvik that have been fixed now I think)
Ogre3D... probably not usable on Android. But I'll have to do some research, because they have had a Java port of Ogre for ages, and if you were to use Jython instead of Cython, you could use the Java version of Ogre3D with little/no performance loss.