Mororola's new free Android IDE
developer.motorola.com
developer.motorola.com
The bad: Is this the beginning of the fragmentation in the Android space? Probably not...
http://android-developers.blogspot.com/2009/06/introducing-a...
You're still going to have to code in Java and talk to the native code through the JNI. You can also download the open source tree and work with the entire native layer, but that's undocumented territory.
(Then you get to pick more pain to go on top, such as which versions of network connection management are you going to support?)
Downloading Eclipse+ADT separately wasn't too hard last time I did it, but it's always nice to have steps removed. Most handset/java (Android, RIM, J2ME) developers I know have several Eclipse installations on their machine anyway to stop plugin conflicts so having one more is no big deal.
(EDIT: They have also removed Linux support, which seems to be an odd decision to say the least.)