First, a run down (and don't take this as definitive, I'm still slogging through the documentation)
- Android will run on windows, linux and mac
- Develop in Java on Eclipse
- There's an emulator to test applications right now
- The UI elements are available, but may not be the final version
The bigger news is that Google is willing to put its money where its mouth is. It's going to give 50 application $25,000 in its design contest. Twenty of those will then get $275,000 or $100,000 to bring the application to market.
As I noted before, this is not an iPhone killer. But, it is clearly something that may work. The fact that Google is willing to subsidize application development for this platform is a good sign. But, until we actually see a phone that this works on, the success of this effort is still in doubt.
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