After seeing piracy drop dramatically and talking with other Android developers with the same problems, I decided to build a site around it and sell my system to other developers.
It took me about 2 weeks to build www.androidlicenser.com and I saw my first $40/month subscription within 5 days. It still brings in about $500/month consistently. Google has since come out with their own licensing system, but it suffers from the limitation of it only working for apps purchased through the Android Market which, in a world with many Android Markets, isn't good enough.