I played with an Android phone and UAV Playground and ported some of my GCS/PFD code.
Setup - FlightGear flight simulator is controlled by UAVsim - UAVsim receives FlightGear telemetry data and sends it to an Android device via Bluetooth - Android device graphically displays the telemetry data - Android device uses text to speech to announce telemetry data
What's it good for? It's a proof of concept that should demonstrate what an Android phone is capable of. It's not a ready to use GCS or PFD and I haven't planned to include the code into a next release of UAV Playground.
My opinion - The Eclipse Android IDE makes programming an Android device supersimple - Once you've got the concept behind Android then it's more or less just Java and OpenGL programming - The performance of the Samsung I5700 (800 MHz + GPU) is surprisingly good at a cost of only $300
What's next? I'll connect a Bluetooth adapter to an XBee to receive live telemetry data on the Android phone.
Update 08/14/10 Yesterday I made some successful test flights with Intermezzo 100. In the setup I used an ArduPilot, two XBee Pro modules and a BlueSMiRF Gold Bluetooth module from Sparkfun. As this is just a serial connection from the plane to the Android device, I used my SimpleSerialization library for the Arduino to serialize and deserialize the telemetry data.