This is big, but it could be huge with one more element.
Right now, if you build some kind of appliance with the ADK, your market is limited to Android users. You're making a device for which the UI can be hosted on a user's mobile phone. But why does it have to be a phone? A proper Android competitor to the iPod would be a start, but here's what I would see as the game changer:
A $49 Android device with just a gigabyte or two of storage, no 3G, no camera, and an older ARM CPU, that can simply become the dedicated screen for something. You don't have to be an Android user and plug your phone into your exercise bike; your bike (or anything else in your home or office) just has a screen and a touch UI.
For $49 you're probably not going to get enough horsepower to run the whole system unless you can get the volume large enough. OMAP3 or i.MX5 could do it, maybe some of the later Chumby models could work.
Bonus: Your bike/whatever will automatically sync with an optional Android app based on your account. Also, some of the sub $100 cheapo Chinese tablets are the hardware you describe.
At I/O, didn't they say that those music cube things were running Android? It certainly looks as if they're planning on moving in that direction pretty soon.
Right now, if you build some kind of appliance with the ADK, your market is limited to Android users. You're making a device for which the UI can be hosted on a user's mobile phone. But why does it have to be a phone? A proper Android competitor to the iPod would be a start, but here's what I would see as the game changer:
A $49 Android device with just a gigabyte or two of storage, no 3G, no camera, and an older ARM CPU, that can simply become the dedicated screen for something. You don't have to be an Android user and plug your phone into your exercise bike; your bike (or anything else in your home or office) just has a screen and a touch UI.