The only downside I see to Android gaming from a developer’s standpoint is the problem of inconsistent hardware configurations. Android being broadly deployed on multiple handsets is a mixed blessing.

It’s great that you have this wide variety of Android handsets to choose from, but I would imagine it wouldn’t be too developer friendly. Designing a game when you don’t truly know what hardware specs to design for can be really challenging. Will they all have touchscreens? How large is the display and what resolution will they be playing at, how much CPU/RAM/GPU power will said device have? The list goes on and on.

In contrast, there are very few hardware configurations for iPhones/iPod touches, making it that much easier for game developers to produce games for the App Store. I mean let’s not kid ourselves, if you were the developer with limited resources you’d try to focus on projects that gave you the biggest returns on your invested time/money.