In addition to that mention of "android layers for other mobile linuxes", here's two other articles to digest:

Android making the jump to cars and homes in 2009

Android on a new Gizmondo Gaming Device?

What I'd like to see:

• Android somehow supported on a gaming device like OpenPandora (either Android with Pandora extensions, or visa versa), working out how to use the analog joystick(s) as a substitute for the trackball.
• Android somehow supported on top of Maemo for NITs.
• An Android based PDA that would be like the G1 without the cell radio (but would include things like the touch screen, native GUI, accelerometers for games that use them, and the trackball instead of a d-Pad), but adding a generic USB Host port (keyboards, game pads, mice, tv-tuners, etc.) and micro-DVI out (with DVI-I). (that way you could use it as a general game console that you can hook up to a TV or monitor, and control with USB game controllers)

I'd also like to see video player support, and a counterpart to the Amazon MP3 store that has TV shows and Movies. With the TV tuner support on the last device, you might also be able to set up something like a light PVR.

Then you've got full competition with iTunes (and thus iPod Touch and iPhone), a dedicated games machine, a general purpose handheld computer that isn't android centric, and a variant of the G1 that is more for PMP and PDA use.

Then imagine the engadget article's full implication:

If you've got a "pandora on top of android" OS instead of "android on top of pandora", then you coul have a set-top box that has gobs of storage, USB ports for tv-tuners and game pads, ability to buy movies and tv shows to watch, and maybe some form of PVR software for it. You could play android and pandora games on it, etc. That'd sound rather interesting to me.