Initial Thoughts on Android 2.3 from a Game Developer's Perspective
badlogicgames.com
badlogicgames.com
The insane amount of money being made by game devs on these platforms continues to amaze me.
As to your other point: a dollar or so for (potentially) hours of entertainment is an excellent value prospect for those of us who do enjoying playing games. Games of all forms have been popular since humans have been human; is it really that much of a leap that some developers are doing well off this ancient impulse? ;^)
In the future, you'll see many devices optimized towards gaming. Manufacturers see this as a way to grow the smartphones market.
I guess these games appeal to the younger generation -- which is probably seen as future growth opportunity.
I really hope Google would try and do something about that. Getting a new $600 phone every year is not exactly something i look forward to.