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We really need front-line technology, example dual core or better, with hardware gfx and phone ability. Long battery life is also essential,. which isn't found on many no-name Chinese brands.
Remember, this will not run under dalvik! You'll get much more performance out of it than you are used to on a single core ARM running Android. Potentially also longer battery-life because of the single core, but I think the developers would rather sacrifice that for a smaller device and a cheaper price.
Supporting Android officially would thus be a bad idea. It might be better to open up the device sufficiantly and let the community handle android like on the N900.
Edit: But yes, no GPS and 3G/4G will probably be a deal breaker for many.