I saw this "The Robot" android phone on Trademe and Googled it. I found it wholesaling on Chinavasion.com for NZ$250-ish. That's cheap.
The specs are pretty mediocre, with a slowish processor (Samsung 400Mhz), 2.8" screen, no 3G, and only two GSM frequencies (900/1800). Almost all web sites talking it up use the same boilerplate text.
The phone will do what it says. In NZ, you can make calls on VF or 2D. You can surf the net via 2G/GPRS. You can use it like a mini-netbook computer. I'm tempted to buy one just to see how good (or bad) it really is.
The only mention of an app market urges phone buyers to go to the And App Store. This isn't the Android Market, but if millions of people with cheap phones go there looking for apps, it may well grow quickly.
"The Robot" is just one example. There are others.
Fascinating to see this happening. Feels a bit like the early PC days.....an open platform growing like a weed in every nook and cranny.